Pulling the Shroud Off Naked Puts
One of life's beautiful equations comes when seemingly unrelated transactions can effectively be balanced in terms of their risk-reward ratio. More to theh point, most investors are entirely comfortable selling covered calls on shares they own. Yet many of these same traders would never consider selling (i.e., writing) naked puts on the same underlying company.
But you probably won't feel that way once you fully understand what each position represents, because these options strategies are largely equivalent. Here's the reasoning behind that....386 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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