Naked Options

Naked options refer to options contracts that are sold or written without the seller owning the underlying assets. This strategy involves unlimited risk because there is no underlying security to offset potential losses. Traders who use naked options are essentially betting on the direction of the market without holding any position in the asset. While this approach can be profitable if the market moves in the expected direction, it comes with a high level of risk and is typically only recommended for experienced traders.

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TIO Staff

Behind every blog post lies the combined experience of the people working at TIOmarkets. We are a team of dedicated industry professionals and financial markets enthusiasts committed to providing you with trading education and financial markets commentary. Our goal is to help empower you with the knowledge you need to trade in the markets effectively.

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