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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