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I think the way it works now is great, being able to go short on naked options with a proper margin maintenance is way smarter than restricting everyone to go l
by hmaxwell 6y ago
I think the way it works now is great, being able to go short on naked options with a proper margin maintenance is way smarter than restricting everyone to go long on options or only allow people to sell calls on covered options (which kind of defeats the purpose of a bearish position when you are required to hold the deliverables).
- kllrnohj 6y agoFor a mass-market low-education target demographic? The defaults matter here. Retail investors shouldn't be restricted from having such capabilities, but that doesn't mean it should be the default
- didibus 6y agoMaybe I'm missing something, but what's the problem with this being the default?
- manigandham 6y agoA bearish position is to be long on puts. You don't need to write options, especially naked options which are usually the highest tier of access on every broker and require extra agreements.
- hmaxwell 6y agoIf you only go long on options, theta is eventually going to catch up with you.