naked option
A naked option is like making a bet you can’t afford to lose. You hope the price goes down, but if it goes up, you have to buy it at the high price just to sell it for less. It’s the worst.
I sold a naked option on Apple. It went up. I had to buy it at $200 and sell it at $180. I’m out of my mind.
My cousin sold a naked option on Tesla. It went up. Now he has to buy it at $300 and sell it at $280. He’s mad.
I sold a naked option on Google. It went up. Now I have to buy it at $150 and sell it at $140. I’m broke.