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Politics : DON'T START THE WAR

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To: Lazarus_Long who wrote (6320)2/7/2003 3:02:33 PM
From: LPS5  Read Replies (1) of 25898
 
Are those naked calls you're selling? Lots of brokers won't let you do that. Never could understand that. Why is that riskier than shorting?

For the same reason - infinite theoretical upside - but the premium play is more leveraged than going short.

Or selling naked puts, which lots of brokers do allow?

Because there's a limiting factor - $0 - to the vol seller's losses.

LPS5
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