The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from optionalpha.com and welcome back to the daily call. Today, we’re answering the question, “Can you sell options without owning at least 100 shares of stock?” This is actually a really interesting one and a very common misconception that people just don't understand as they get started into options trading. Now, it’s not their fault that they don’t understand it. I don’t think anybody really explains it. That's why I’m trying to do this podcast about it, so that people understand what the risks are and what you actually need to do or what capital you need to have if you actually want to start selling or buying option contracts. A big common misconception is, “Well, I can’t sell options if I don't have 100 shares of stock.” And what I think the root origin of this misconception comes from is from when brokers initially approve people to start trading options, they usually approve people to trade covered calls and covered puts. And when you do a covered call or a covered