I am amazed that some people still think naked puts are a significantly safer choice to naked calls (yes, technically they have limited risk since a stock can only go to ZERO, but practically???) - as if a stock would rise by infinity overnight (or ever for that matter) which is what they are talking about when they refer to "unlimited risk" with a naked call, the stock going to infinity, lol. Well, where is this stock that can technically go to infinity? I've never seen it, but I've seen plenty head south bigtime! More likely the stock takes a beating and drops 50% overnight than go up 50% overnight - did goog ever make such a big upmove overnight (or any other "blue chip")? When people talk about unlimited risk they usually mean potential substantial loss, but it's good to see that the pedants on this site (you know who you are) are still reading posts and contributing their "technically correct" but practically useless information. Bottom line for those who still don't get it - selling naked options, whether puts or calls, carry SUBSTANTIAL RISK. ra1
Can somebody please give insight on tax basics & bookkeeping of this strategy? If options are held until expiration are they taxed as regular interest?