[dalby]

d00d,

i have written naked PUTS. i would NEVER write naked calls

and as i said, the difference is that the risk is NOT unlimited in naked puts. basically, i write naked puts in my INVESTMENT account (not trading account) at a strike price where i would want to start accumulating the stock.

if i write naked puts with a 20 strike, and the stock is currently at 22, that means i would buy if i could get it at 22
a stock can only go to zero but it can go up (theoretically) infinitely.

so, naked calls DO have unlimited risk. naked puts do not.

it is incorrect to say that naked options in general have unlimited risk. that is only true of naked calls