naked option
A naked option is like selling a promise to sell something you don’t own, hoping it will crash so you can laugh all the way to the bank. If it goes up, you’re screwed and have to buy it at the high price just to sell it cheap.
I sold a call option on Tesla thinking it’d crash. It went up 50%. I’m now buying cars with my own money.
My friend wrote a naked option on Bitcoin. Now he’s crying in a crypto group chat.
I bet the stock would fall. It went up. Now I have to buy it and sell it at a loss. What a joke.