If he had a spare million dollars in his account, any retail,broker would allow it. They do not not care about a customers risk, as long as the broker is protected. Mark
Of course, if he had a spare million in his account... he could've bought GE @ 7, and been up approximately $350k (instead of $50k) after this move.
This is a dangerous weekend to hold any put options on financials or companies that trade like financials if, mark to market gets ammended or removed all these stocks will rally and rally huge ( perhaps temporarily).
Who cares about the broker? If we go limit down he goes debit by 9:30:05.. It is NEVER-I repeat-NEVER acceptable to sell naked vola... Selling naked vola is akin to offering your unborn daughter for a lifetime supply of ruphynol.
Why is it that no one here is saying congratulations on a good trade? I notice people love to put others down but never acknowledge when some takes the right side of a trade and cashes in** ** Assuming he bought to close his position.
Why? I mean why would people post a lie about a trade. What does the person gain? And why assume. It would be a better place if people do not assume. It is not like what he did is something no one ever does. 1 million is not that much really for a trading account. I have seen on the screens people trading blocks of 2000 options. I have seen it with GE plenty of times.
What part of unlimited risk do you not understand? Do I need to break it down for you like you're a small child? It is NEVER OK to risk an infinite sum for a fixed sum. Example: Let's flip a coin. If you win you get $10, if I win I'll sleep on it for a few days and let you know how much you owe me. Deal? FWIW, I have VERY expensive tastes.
Are you straight out dumb? He sold a 5$ put. Most he loses is 950k+fees if it goes to zero. It's not unlimited risk.
Not only that but the risk from selling naked puts (which sheeple think is dangerous) is for practical purposes equivalent to the risk from writing covered calls (which sheeple think is conservative).