What he liked best was to just buy
naked call options on stuff.
Not exact matches
In effect, the entire market converges to what professional
option traders
call a «
naked short straddle»... a structure dangerously exposed to fragility.»
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.
Naked Option: A naked option involves the sale of a call or put option without holding an equal and opposite position in the underlying instrument; in this case, a futures con
Option: A
naked option involves the sale of a call or put option without holding an equal and opposite position in the underlying instrument; in this case, a futures con
option involves the sale of a
call or put
option without holding an equal and opposite position in the underlying instrument; in this case, a futures con
option without holding an equal and opposite position in the underlying instrument; in this case, a futures contract.
I'm a frequent
option trader but at a different level, never sold
naked calls or puts.
Let's say there is a stock of ABC currently at $ 8, and I sell a (
naked)
call option on it, with a strike price of $ 10 and expiration in two months.
They are also
called naked options.
We specialize in stocks, bonds and
options and we engage in a lot of premium selling in managing our strategies, whether it is covered
call writing or
naked put selling.
It is «covered» because you own the underlying stock at the time you sell the
call option (if you didn't own the underlying stock you would be selling an «uncovered», or «
naked»,
option).
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Most brokers, and in my case thinkorswim, allow defined risk trading, meaning you can trade almost any
option and spread except
naked short
Calls and short stock.
I have three
options set to expire in December — 10 TLT
naked calls, one SPY covered
call and one MDY covered
call.
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If I believe a stock will go up, say from a price of $ 100, and I wish to execute an
options strategy that would make me money if the stock were to rise, why would I want to setup a vertical spread when I could instead purchase a single
naked call?
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My other
option is on TLT in the form of 10 $ 124
naked calls.