Re:Offline Algorithms in Low-Frequency Trading
by dheera on Saturday January 30, 2021 @07:32PM
(#25974505)
> downside is 0 on a naked put
What? If the stock goes lower than the strike price, the downside on a naked put is the difference between strike price and market price. You will be forced to take delivery of the stock at the strike price when you could have bought it for market price if you hadn't written the option.
What? If the stock goes lower than the strike price, the downside on a naked put is the difference between strike price and market price. You will be forced to take delivery of the stock at the strike price when you could have bought it for market price if you hadn't written the option.
It is not 0.