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re: Options Trading Thread

Posted on 8/23/23 at 4:11 pm to
Posted by Jag_Warrior
Virginia
Member since May 2015
4181 posts
Posted on 8/23/23 at 4:11 pm to
quote:

Can you be assigned on naked calls even if you don't have margin enabled?

If you open a position as sell to close, are you at risk here?


I’m a little confused. You’re talking about being short naked calls, but the transaction would not be in a margin account? I’m not aware that this would even be possible, not at any brokerage firm that I’m aware of. The risk on that trade is infinite, so a margin account and level 3 (or whatever the highest level is called at your brokerage) would be necessary.

And when you say “open a position as sell to close”… I don’t know what you mean. Sorry.
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