Why would you sell a naked put though? Sell a put spread (e.g. short 155 put, long 150 put) and you can exert extremely fine control over your max liability. $500 per contract in the aforementioned case.
Alternatively, I may want to own shares because I'm a buy-and-hold investor. An out-of-the-money call solves the FOMO problem.
The "risk" of a naked put is that you might be forced into buying shares. Well, that's fine. I'm a buy-and-hold, relatively conservative investor. I was planning on buying those shares anyway.
Alternatively, I may want to own shares because I'm a buy-and-hold investor. An out-of-the-money call solves the FOMO problem.
The "risk" of a naked put is that you might be forced into buying shares. Well, that's fine. I'm a buy-and-hold, relatively conservative investor. I was planning on buying those shares anyway.