Sentences with phrase «trading naked options»
Not exact matches
I'm approved for «naked» options trading meaning I can sell puts on companies I don't own and without having the cash to purchase said security.
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Note: To trade out of a spread position, it is recommended to first close the short leg before closing the long leg to avoid the high margin charge of the naked short option position.
For Pattern Day Trading accounts, a short option that is opened and closed in the same day is considered to be a speculative trade; therefore, the account will be held to the naked requirement on the position.
Technorati Tags: naked puts, investing, stocks, options, covered calls, options strategies, trade, stock chart
Most brokers, and in my case thinkorswim, allow defined risk trading, meaning you can trade almost any option and spread except naked short Calls and short stock.
Technorati Tags: naked puts, investing, stocks, options, covered calls, options strategies, trade, trading journal, trader's journal, stock journal, finance, options table
Technorati Tags: naked puts, investing, stocks, options, covered calls, options strategies, trade, finance
On an average, $ 5,000 is the average to open a option trading account, but the broker will probably limit your account to basic option trades rather than the more advanced strategies like naked put selling, which carry more risk.
Filed Under: Daily Investing Tip Tagged With: derivative market, Investing, naked option derivatives, Trading Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
My last option trade on AA was three July 37.50 naked puts that expired worthless.