naked option
A naked option is when you sell a contract without owning the stock. If the stock goes up, you’re forced to buy it at the high price just to sell it for less. It’s like being stuck in a bad relationship.
I sold a naked option on Twitter. It went up. I had to buy it at $50 and sell it at $40. I’m out of my mind.
My friend sold a naked option on Coinbase. It went up. Now she has to buy it and sell it for less. She’s mad.
I sold a naked option on Amazon. It went up. Now I have to buy it at $150 and sell it at $130. I’m broke.