naked risk

you don't know what u are talking about if u can't understand basic arithmetic

risk on naked calls - unlimited
risk on naked puts - limited and predetermined

hope that helps

 

Another brain-fart, Whister?

 

I tend to disagree. The risks should be simmetric. It means only one thing - the risk on naked calls is also limited.

 

they's quite a bit a learnin needs doin' if this are the best that ET offers in this thar' area

 

That limited and predetermined risk can take you debit as quckly and efficiently as selling a naked call.

 

Exactly. If you look at SPX index as SPX/USD pair then puts for SPX become calls for USD and vice versa.

 

Consider the move from $397 to $339 on GOOG. Selling a 50lot Mar $360 put into a $250k book produced a debit balance in stated-account on the >3sigma move in the underlying. Debit is debit; it becomes somewhat academic as to the mag and bounded vs. unbounded risk.

Nobody disputes the theoretical-risks involved. You somehow feel the need to stretch your chicken-intellect... why is that?

 

Riskarb, just try to think outside the box. Both risks are either bounded or unbounded. I believe they are both bounded. And I've explained already why. And I think you are intelligent enough to understand it too.

 

Thanks, I'll try and do that. Maybe it would help if you managed to go a sentence without a spelling or grammatical-error.

 

Each commodity is plotted against another commodity which is actually USD. When people go long they buy commodity and they sell USD. When they are short they buy USD and they get rid of commodity. Markets are powerstruggle between commodity and cash. Reverse the charts upside down and the calls become puts.