lucky66 1 Report post Posted February 10, 2016 Which broker allow new users to sell naked options? Any suggestions? I have been trading naked options with Fidelity for 10 years, I know the risk. Share this post Link to post Share on other sites
Kim 7,504 Report post Posted February 10, 2016 I know that IB has no problem with naked options. Share this post Link to post Share on other sites
Marco 221 Report post Posted February 11, 2016 you need a Reg-T or Portfolio margin a/c to sell calls naked as they have unlimited loss potential. In 'cash' accounts (usually pension or tax preferred a/c's - whatever they are called in your jurisdiction) can only sell puts and they have to be fully cash covered (i.e. you have to have the cash in the account to buy the share at the strike price of the Put that you are selling) So if your broker allows you to open one of these accounts (they usually need to ensure that you are experienced and/or wealthy enough so are likely to enquire about trading experience and net worth/income) they should allow you to sell options naked Share this post Link to post Share on other sites
krisbee 1,611 Report post Posted June 21, 2016 I found this site recently, I know the risks of naked puts. Just sharing this URL, looks like they managed 60+% in 2 years. I think their portfolio may not look good if market is bearish. http://www.optionthink.com/track-record/ Share this post Link to post Share on other sites
Kim 7,504 Report post Posted June 21, 2016 Well, take a look at their position sizing: it's around 16-20k, and they have 8-12 positions at any given time. Which means pretty high leverage. As you mentioned, if the market take a dive and they are assigned on all (or most) positions, it won't be pretty. Share this post Link to post Share on other sites
