naked option
A naked option is when you bet against a stock you don’t own. If you win, you make cash. If you lose, you’re stuck buying the stock at a high price just to sell it for less.
I wrote a naked option on GameStop. It went up. I had to buy it at $300 and sell it at $200. I’m broke.
My mom sold a naked option on Apple. It went up. She now has to buy Apple stock and sell it for less. Classic mom move.
I thought Amazon would crash. It went up. Now I have to buy it at $150 and sell it at $130. I hate options.