tasty BITES - July 11, 2017 - Naked Premium in Small Accounts




The tastytrade network show

Summary: 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](https://www.tastytrade.com/tt/learn/naked-options) 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.