undefined | Better HN

0 pointsJumpCrisscross5y ago0 comments

> The problem with options is that your liability with them can get bigger than your equity

Only if you sell them. A bought option’s maximum downside is the premium.

Does Robinhood let users sell options?

0 comments

You can't sell them naked. You can sell covered calls & cash covered puts. You can also wrangle margin into it, but as far as I can tell you're unable to do it naked.

j / k navigate · click thread line to collapse

0 pointsJumpCrisscross5y ago0 comments

> The problem with options is that your liability with them can get bigger than your equity

Only if you sell them. A bought option’s maximum downside is the premium.

Does Robinhood let users sell options?

0 comments

rwmurrayVT5y ago

You can't sell them naked. You can sell covered calls & cash covered puts. You can also wrangle margin into it, but as far as I can tell you're unable to do it naked.

j / k navigate · click thread line to collapse