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Re: Writing Naked Puts & Calls - Risks
if your selling options as a naked position there is a lot of premium in them when volatility is high,and if you sold both calls and puts for a spread that will shrink with time ,and if you are always on top of the market so you can constantly adjust your position,they can be extremely profitable,if he's losing on a regular basis then he's probably trading more size than his knowledge of the markets can steer,like a bus versus a bicycle, you could advise him to sell calls against his puts when hes wrong or vice versa,and to trade smaller when he's cold ,sometimes you just don't see clearly and it's best not to trade when you are having those types of days
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