Options Trading Tutorial

Will online brokers allow me to short stock options in a margin account?

I'm talking about shorting puts and calls, not buying a put. I'm opening a margin account at one broker and I will ask them, but if they tell me No, do some brokers allow this practice? Yes, I know shorting them is risky, but I have a plan.

Public Comments

1. It's called a naked put or a naked call. If the naked put goes against you you'll be "put" the stock. If the naked call goes against you... your losses can be unlimited. I'm assuming you know the Greeks. Without a good working knowledge of them you could quickly wipe out your account. Unless... you're doing some type of spread, like a vertical or butterfly. Selling premium is the number one way ThinkOrSwim suggests making money on Options (that's what you're doing... selling premium). Oh.... to answer your question.... ThinkOrSwim will allow you to sell naked options.... and a whole lot more than what most brokers will allow. They have been in the top three brokers rated by Barron's for the past three years & were just recently purchased by Ameritrade. http://www.thinkorswim.com/ For great free webinars on stocks and options; https://www.thinkorswim.com/tos/displayPage.tos?webpage=onlineSeminar I must stress... If you're an amatuer & don't know the Greeks.... take a year or more to learn Option Trading...... your plan can cost you a lot! ya@ErieStockTrader.com