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eru
5537 days ago
I don't see how writing naked puts involves selling. They involve buying, only.
1 comments
Snurre
5535 days ago
All buying involve the counterpart selling. How can you buy something that isn't sold?
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eru
5535 days ago
Oh, but in naked puts the seller of the underlying assets (i.e. the buyer of the put) calls the shots. If they don't want to sell, they don't have to sell. And the writer of the put only ever has to put up at most the strike price of the put.
So no unlimited risks there.
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