This video continues to discuss the risks from short option selling only, why I can’t view this as a viable trading method. Yes, we use short options strategies all the time, but only because they are combined with directional price continuation trades for protecting them.
The Trading Risk From Selling Short Uncovered Options
November 22, 2013 by
Selling cheap uncovered short options strangles that are multiple strikes out of the money may seem like an easy way to make money, because of the supposed likelihood of the trade expiring worthless. But it is a trade with terrible risk reward and may be a lot riskier than would appear from the short strikes location.
