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My question too. I am sorry I am lazy. I'd just rather ask someone who read the order, than read the thing. I am not interested in shorting financials - for me the time to short financials is over. But, I am interested, just for curiosity, does the order prohibit synthetic shorts? For...

LOL.

Well your post is exactly what the popular literature I was refering to says. Still they are not good hedges in my book.

I haven't been on ET in a couple of weeks. But, in light of today's events, I thought I'd stop by this thread. I was wondering are those who were proponents of naked put sales, are you still proponents? Or even covered calls or cash secured puts? Don't get me wrong I love options. Use them...

Like a covered call. Limited upside potential, fairly steep loss potential. A lot of people swear by covered calls and cash secured puts - their bread and butter. Some have done very well. To me, why not sell a put verticals? A little less return, if you're above the short strike; but a lot...

LOL. Well there are a lot more knowledgeable people here than I that can hopefully answer your question. All the best.

The risk of not being able to meet a margin call in an account that is leveraged, I think is fairly substantial over an account that is not leveraged and does not have that risk - especially when you are short premimum and don't have the cash to back it up. Actually in both scenarios you're...

If you can't meet a margin call the broker will begin liquidating as fast as they can, any assets in your account until its met. And if that doesn't meet the call, they'll stop you from trading. Happens all the time. Happens to small retail traders. Happens to profesional traders managing...

The gap is filled when the price closes at or below this line.

It is. I didn't see the letter "b."

Well still too hard for me to follow. I am lost now. This is my last post on Are naked puts really this safe???? I'll be back on other threads. I'll never be able to make heads or tails out this from this point on. Seriously, on the question that initiated this thread, I think its...

Now I was following it all up until now. But like I said, I've gone back and read a lot of old threads over the last couple of years. So I recognize old handles. Riskarb responding to Atticus, really is beyond my intellectual scope. I can't follow this anymore.

I've been on and off on ET for a couple of years. But, I've gone back and have read threads a number of years old. The same story repeats itself again and again. A thread begins with someone saying, "selling naked options are really cool." The experienced traders come back and say "be...

Good point.

BTW, to me if they are cash secured, they are not really naked puts. They are covered with cash.

Nope. If you have the cash, its just like it's a covered call. Thats why IRA accounts allow cash secured puts. You know that. But, does everyone posting here know that? "Not to worry, I'll just sell some more puts."

That is right and this is what people don't see when they are look simply at the risk graph. I don't do covered calls either btw.

Yep. You can blow right through them with your trade not being executed.

I didn't read every post on this thread; but got the main points. Seems to me selling or buying verticals (buy one/sell one), in terms of risk/reward, is so much more superior, than selling naked calls or naked puts. There is a little less reward on a vertical; but the reduction of risk...