Re: Are naked calls/puts insanely +EV? What am I missing here?
the payoff profile of selling options is basically win win win win win win win win win win win LOSE HUUGGGEEE
you are earning a premium for selling coverage to those who want it.
aside from the fat that the B-S model is woefully deficient in pricing of these options, the payoff profile itself isn't very attractive.
Barron
|