Chapter 21. Stock Substitutes

As discussed in Chapter 20, “Naked Option Writing,” there is substantial risk in trades that involve uncovered short options. Nevertheless, in some circumstances, it is worthwhile to consider naked positions. In this chapter, we examine some situations in which you can use naked puts and calls as cheap substitutes for stock.

Get Options for the Beginner and Beyond: Unlock the Opportunities and Minimize the Risks now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.