So we've all heard horror stories of people (like Neiderhoffer or Leeson) blowing accounts from selling index puts. So... selling naked index puts: Big Bad Risk.
Then there're guys touting conservatism of writing covered-calls, which is essentially the SAME as writing naked puts.
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Amazingly, many brokers have different risk levels that need to be approved before they will allow the use of a certain strategy. Often, the covered call is the first thing brokers will allow a client to trade because it is deemed safe. The sale of a naked put is the last thing that is approved since it is “ultra risky.” Again, huh?
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What the heck is wrong with people today?!
Then there're guys touting conservatism of writing covered-calls, which is essentially the SAME as writing naked puts.
"
Amazingly, many brokers have different risk levels that need to be approved before they will allow the use of a certain strategy. Often, the covered call is the first thing brokers will allow a client to trade because it is deemed safe. The sale of a naked put is the last thing that is approved since it is “ultra risky.” Again, huh?
"
What the heck is wrong with people today?!
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