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Re: Writing Naked Puts & Calls - Risks
the reality is that most options expire worthless, so at least on its face, selling premium would be higher probability than buying it.
however, the loss is unlimited when you sell premium (with calls)
options are great. i love them. but they are more complex than futures cause you have to understand time premium, volatility, etc. iow a lot more than merely direction.
in futures, you only have to be right about direction to make $$$. in options, it's different. you can also have NO idea about direction, but be right about volatility and still make money.
options are much more flexible than futures, too
and if you are right, and you take the options position with the max profit, you can and will make a much larger return than you would with the equivalent futures position.
for new traders, i don't recommend options. i think getting a grasp on price action, which will help you in all markets, is the first step.
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