selling naked put
$Tesla(TSLA.US$ can someone educate me why are there still so many bid for put option at 750 strike price, expiring today? any risk if we use margin to sell these put to earn some premium?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Silverbat : KW knows that
stonks 30000 : why? because some people are dumb.
risk? there's always risk maybe something drastically changes in the fundamentals of the company which causes the share price to plummet. but aside from that, with such a far out of the money option the risk is incredibly low.
hexuan92OP : the point is expiring today, any chance that the hedge funds will still want to exercise at a loss?
hexuan92OP Silverbat: who is Kw?
stonks 30000 hexuan92OP: possible but this is so far OTM. they'll be buying at the current market price and selling them at 750 if they choose to exercise...
hexuan92OP stonks 30000: yea, just asking if possible they wanna do that lol, if not then why not we leveraging to sell puts to them?
stonks 30000 hexuan92OP: you can, I'm sure people do. just make sure to be careful when using leverage.