No. of Recommendations: 1
I think the quote is probably referring to people who are writing puts without the cash backing, then thinking of the premiums as income.
Yes, that is exactly what she was doing. Which I figure is why she went broke.
The impression I get from various readings & discussions of options is that most people treat them for income generating or lottery tickets.
And that very few think think of them and use them as a way of lower risk leverage (buying DITM calls) or "put writing is just a conditional way of buying a stock."
And damn few people have written 100,000 put contracts.
