selling naked call naked put?

Question

hi guys do you think its good idea to sell naked put and naked call stock option on last day of expiration like xom, aapl, goog,

Answer 1

I assume by "the last day of expiration" I assume you mean the last day before expiration, i.e. the third Friday of the month.

I also assume you mean selling options that will expire the next day.

If those assumptions are correct, than I think it would be difficult to get enough extrinsic value (time premium) to make the trade worthwhile. In other words, I don't think the expected return would justify the risk.

Answer 2

On the last day those options would be worth pennies. And if in the last hour something either good or bad of those copanies come out, then you'll lose huge.

Answer 3

look at the history of those companies on those days....and see if you would have been burned BAD or not..............and how much you would have made if you were on the right side..........