Re: Are naked calls/puts insanely +EV? What am I missing here?
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rofl you think everyone that trades options has $100mm liquid????
pls tell me I'm misunderstanding your post
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i'll help you out a bit:
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Your assertion is false for one thing.
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Secondly, markets are discontinuous is the biggest risk, i.e. blowup risk.
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Third, no matter how good you are at poker, you don't have NEARLY the bankroll to sell naked options. Not even close. I required my old trading clients to have > $100mm liquid to start doing those trades. Some years you make $12mm net, others you lose $4mm [or more.] It's a very rough way to make an easy living.
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NoD's old trading clients are probably not the entire market.
Barron
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