Writing Options
- Thread starter will2205
- Start date
Yes......retailers can write options. But you will need a higher account balance plus approval from your broker to write options.
You will probally be allowed to write Covered Calls right off the bat, but CC's cap your gains and you are still exposed to the downside.
You will probally be allowed to write Covered Calls right off the bat, but CC's cap your gains and you are still exposed to the downside.
Would recommend retailers avoid selling naked calls altogether and if dead set on selling options focus first on credit spreads to limit your risk and margin requirements.
I would check with a broker.
1. Never sell naked calls
2. If you short calls and are assigned you will then be short the stock unless you have the stock already in your portfolio and it was a covered call.
2. If you short calls and are assigned you will then be short the stock unless you have the stock already in your portfolio and it was a covered call.