Buying naked calls is really a sucker's game for all reasons advised.
What he liked best was to just
buy naked call options on stuff.
Not exact matches
When you sell a covered
call, also known as writing a
call, you already own shares of the underlying stock and you are selling someone the right, but not the obligation, to
buy that stock at a set price until the option expires — and the price won't change no matter which way the market goes.1 If you didn't own the stock, it would be known as a
naked call — a much riskier proposition.
When we do see another VIX print above 40, expect to see me selling more VXX
naked calls or at least
buying puts.
The best move I could've made would've been to
buy my WMT
naked put before it expired and since I didn't, I had to decide if I should dump the shares or sell a covered
call.
USO I started the day by selling covered
calls on my 300 newly acquired USO shares I had to
buy at $ 31.00 (I paid $ 9,319.99 with commissions) from the February 31
naked puts that expired in the money (ITM).