Chungst

Naked Short Selling: The Scales Are Rigged

Michael Shaffer's article is flawed on a number of levels. The most obvious flaw is to sell naked options, be it ATM or OTM or ITM, requires capital. The last time I checked "capital" didn't grow on trees.

It would help if the author, at a minimum, understood how the options market works. The industry standard analogy of selling naked puts is akin to selling insurance and not selling "virtual shares."