19 - Notional Value and Risk in Theory vs. Risk in Practice
The Trade Busters
00:00
Trading Naked Puts - The Risk in Theory vs the Risk in Practice
The naked put has a 19 x risk to reward ratio. That's why people don't like the idea, or don't recommend a trading naked put because the risk reward sounds so bad. In practice, do you really have that 950 dollars of downside risk? I would argue no. Right now, obviously, whath what covid just e a little more than a year behind us like you might have 300 dollars of upside risk in this market.
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