Short Selling Puts: a fantastic utopia?

[chilty]

Why would anyone want to short puts, or calls for that matter, without an offsetting long put or call for protection thus limiting risk and reducing attendant margin?

 

[atticus]

Quote from chilty:

Why would anyone want to short puts, or calls for that matter, without an offsetting long put or call for protection thus limiting risk and reducing attendant margin?

Selling the 5P is a 5-wide vertical. Let's not open the peanut gallery, please. This isn't a thread about the evils of writing naked.

 

[spindr0]

But yeah, IB lets me write naked all the time.

Break down and buy some clothes!

 

[spindr0]

Why would anyone want to short puts, or calls for that matter, without an offsetting long put or call for protection thus limiting risk and reducing attendant margin?

Some people think that they're smarter than the market.

 

[atticus]

Quote from spindr0:

Some people think that they're smarter than the market.

Then why trade at all?

 

[commiebat]

Quote from atticus:

Then why trade at all?

Because they think they're smarter than the market.

 

[El OchoCinco]

Then why trade at all?

 

[atticus]

Nobody would trade without a perceived edge. So why would the smart, hedge?

 

[Eliot Hosewater]

Quote from atticus:

Nobody would trade without a perceived edge. So why would the smart, hedge?

Does the name Long Term Capital Management ring a bell?

If not then you win the No Bell prize.

 

[atticus]

Quote from Eliot Hosewater:

Does the name Long Term Capital Management ring a bell?

If not then you win the No Bell prize.

You don't hedge if you believe you can beat the market. Delusional, sure, but the World is littered with delusional gamblers.