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Naked Strategies
Selling naked options – selling insurance - as it is
sometimes referred, is a strategy that can yield significant
returns for investors, but can also result in taking on
potential unlimited downside,
these should be considered high
risk as traders can lose more
then the capital invested.
Like all strategies, there are times when this strategy is
appropriate and others when less so. Knowing why and when
will have a dramatic impact on your success and wealth
building through the options market, as well as your risk
management, making this is a key module within our program.
As a point of note, this is a strategy we generally
discourage for less experienced traders and investors, while
acknowledging it does play a valuable part in options
trading.
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