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You can't buy a naked call/put. Naked, covered, and cash secured are terms used to describe how you are covering your downside when you are selling options. W
by superfrank 8y ago
You can't buy a naked call/put.
Naked, covered, and cash secured are terms used to describe how you are covering your downside when you are selling options.
When you buy an option, your downside is always the cash you spent on the option, so you don't have different types of purchases. When you buy you are just buying an option.
As for Robinhood, they don't allow for selling of naked options, only covered and cash secured.
- stevewodil 8y agoInteresting, thanks!