Wednesday, 18 December 2019

WhyNaked Selling & Naked Buy Strategy are BIG NO 👇👇

WhyNaked Selling & Naked Buy Strategy are BIG NO 👇👇

Expert pls Stayaway 😜 Msg only for beginners & retailers 

Why Naked Selling And Naked Buy Only Strategies are Big NO
•  Avoid “Naked Selling”:
I) Very High Loss will occur if underlying makes large move
ii) Huge loss in case of Big Gap Up/Gap Down
iii) No peace of mind

•  Avoid Naked “Buy Only”:
I) Most option expire worthless, especially OTM 
ii) Premium decrease daily due to TIME Decay everyday
iii) Low probability of profit-like buying lottery tickets 


So Buying Naked Option is Risky as Well As Selling Naked Option...Then 
What should we do, what is a Right way to Trade OPTION?
Answer: Spreads

Benefits of Trading Spreads: 
I) Lower Risk, Limit your maximum loss
ii) Neutralize Vega & Theta (Time decay) Risk
Iii) Best for Trading for living 
iv) Peace of Mind


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