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Re: Writing Naked Puts & Calls - Risks
an example of the liquidity of options was one day last year when GOOG had a big selloff.
the MM's on the options were NOWHERE to be found. the spread was HUGE (much larger than the stock) such that people with calls would have to accept terrible price for fill and people with puts would get a much worse profit than they should have.
and that's on GOOG which is a very liquid stock, with lots of options activity.
i very much like writing naked puts. but that's an investment strategy not a trading strategy.
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