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Naked Premium in Small Accounts

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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

The capital constraints of small accounts can push traders to mostly defined risk trades. Today, tastytrade explains how to implement naked positions in smaller accounts.

While high BPR comes with naked premium, it is ok to use a large amount of your capital on one trade if you are comfortable with the risk. To get comfortable with undefined risk, selling 1 ATM Put in 1 low-priced ETF is a great start.

Tune in to uncover which ETFs our team commonly looks at and how to select the proper strikes in these products for optimal trade entry.

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