I posted this question on other boards but thought i would post it here to just in case some newbies were wondering the same thing.
"Got a question for all the experts on here
Im trying to learn about about naked short selling an option.
For example, CME (currently at 194.57)..i dont think it will fall below 155 before Dec expiration, so i want to sell 10 155.00 Puts @ 4.00 which would credit my account $4,000. Now if CME closes higher than 155 on Expiration day that would mean the puts are worthless so i would keep the whole $4,000. Now obvisously if it suddenly drops down to that level or even below i would have to buy the contracts back probably at a higher price (which would result in a loss) so i dont get caught naked.
Can i do this?
Trying to find some good ways to play Expiration a week or two before, especially with premiums getting as high as they are."
