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Politics : DON'T START THE WAR -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (6320)2/7/2003 3:02:33 PM
From: LPS5  Read Replies (1) | Respond to 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



To: Lazarus_Long who wrote (6320)2/7/2003 3:05:44 PM
From: zonder  Read Replies (1) | Respond to of 25898
 
Yes, naked calls. They let us do it because of the lump of cash we have in their vaults.


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