Discussion in 'Options' started by will2205, Dec 14, 2005.
SHould writing options be left to the pros or can retailers do it as well?
Yes......retailers can write options. But you will need a higher account balance plus approval from your broker to write options.
You will probally be allowed to write Covered Calls right off the bat, but CC's cap your gains and you are still exposed to the downside.
Would recommend retailers avoid selling naked calls altogether and if dead set on selling options focus first on credit spreads to limit your risk and margin requirements.
What must be demonstrated to be approved?
I would check with a broker.
I want to write options covered by futures.
If I'm short a stock call option must I own the stock or will I be assinged a short position.
1. Never sell naked calls
2. If you short calls and are assigned you will then be short the stock unless you have the stock already in your portfolio and it was a covered call.
Can I cover options with stock as well as with futures?
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