What Is a “Perpetual Option” and How Does It Relate to Naked Selling?
A Perpetual Option is a derivative that, unlike a standard option, does not have an expiration date. It remains active indefinitely until the holder chooses to exercise or the writer chooses to close the position.
Naked selling a perpetual option introduces an even greater time-based risk, as the writer's obligation never expires, exposing them to long-term market movements.
