Please correct if my understanding is incorrect.
For both statements, assume the option is ITM at expiry. Because if its OTM, then there is no risk and it expires worthless.
Selling of naked put option is the same as owning 100 units of stock at the sell option strike price
Similarly, selling of naked call option is the same as shorting 100 units of stock at the call option strike..
Short position has a higher risk than long positions because of unlimited loss potential. I get that.
But why do people in general say selling naked options are dangerous? It is only as dangerous as directly owning 100 stocks in case of naked call sale, and shorting 100 stocks in naked put sale. Is it not?
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