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eru
on April 25, 2011
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Amazon’s $23,698,655.93 book about flies
I don't see how writing naked puts involves selling. They involve buying, only.
Snurre
on April 26, 2011
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All buying involve the counterpart selling. How can you buy something that isn't sold?
eru
on April 26, 2011
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Oh, but in naked puts the seller of the underlying assets (i.e. the buyer of the put) calls the shots. If they don't want to sell, they don't have to sell. And the writer of the put only ever has to put up at most the strike price of the put.
So no unlimited risks there.
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