Zeev's Turnips Patch-No Politics (ZEEV)

[Newly2b]

When it's a bad time to sell and hold options, it might be a good time to buy and hold options.

Say what? Doesn't that depend on what option you are talking about, a Put or a Call? There can never be a time when it is flat out bad to be short both Puts and Calls, only a time when it is bad to be short a Put (basically the same as being long a Call) or a time when it is bad to be short a Call (or long a Put). For example, at a market top, one would do equally well being short a Call or long a Put, and at a bottom, the opposite.

BTW, I believe at IB if they are cash-covered, the only option trade one cannot make in an IRA is to be short naked calls (the rationale being if called a short position is created in the stock which requires margin and is therefore not allowed in cash accounts). Being long naked Puts is no problem because the holder of the option has the right but not the obligation to fulfill the contract, so obviously if one doesn't own the shares and the option goes to expiry ITM, one simply doesn't exercise (technically that would never happen because one would sell the ITM option prior to expiry for a profit if one didn't own the shares).

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