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Careful with selling naked options though. You can have limited profit and unlimited risk in some cases. Selling naked puts on a stock you want to own or sell
by lujim 10y ago
Careful with selling naked options though. You can have limited profit and unlimited risk in some cases. Selling naked puts on a stock you want to own or selling covered calls are pretty safe. Otherwise maybe spreads to hedge things out.
- scurvy 10y agoI didn't say they had to be naked. I almost always trade spreads. Naked options tend to be for casino individuals. Also, selling naked puts against the VIX is a good long hedge. It's not going to 0 and when it gets really, really low there's already a little resistance in there as skepticism kicks in. You won't make a ton of money on the downside, but you can sell enough to buffer any long losses.