Buy a Call Option v Sell a Put Option

Discussion in 'Options' started by FortyTwo, Nov 30, 2020.



  1. No difference .
     
    #51     Dec 9, 2020
  2. cesfx

    cesfx

    Doesn't naked mean you have enough money for the margin but not to cover the stock equivalent, and cash secured that you have enough to cover assignment in full?
     
    #52     Dec 9, 2020
  3. newwurldmn

    newwurldmn

    naked means unhedged. You aren’t short stock or long another put against it.
     
    #53     Dec 9, 2020
  4. cesfx

    cesfx

    That is clear. But I thought and read around that there was a difference between cash secured and naked. That being having the total cash availability for eventual assignment (cash secured), or just the margin to enter an unprotected short and not enough to cover the underlying (naked).
     
    #54     Dec 9, 2020
  5. cesfx

    cesfx

    "Naked options refer to an option sold without any previously set-aside shares or CASH to fulfill the option obligation at expiration."
    From investopedia.

    Aren't they the same type of trade, with a difference in the cash balance?
     
    #55     Dec 9, 2020
  6. newwurldmn

    newwurldmn

    yup. That is the only difference.
     
    #56     Dec 9, 2020