Replies to post #334 on STEC, Inc - (formerly SimpleTech, Inc.) (STEC)

[sylvester80]

>>>Why sell naked puts? It is a great way to buy stock at a discount!

It all depends on PPS. With naked anything (calls or puts) if you bet against the way the stock ends up moving, and you don't have the underlying stock to back you up, then you really could lose some serious money. But as long as you have stop loss triggers you should be OK... unless something like that AH swoon from $23 to $15 happens and you can't trade options at the time... then I would consider that "getting killed"...