Sentences with phrase «naked calls»

The term "naked calls" refers to an options trading strategy where an investor sells call options without actually owning the underlying asset. It is considered risky because if the price of the asset increases substantially, the investor may need to buy the asset at a higher price to cover their position and potentially face significant losses. Full definition
If the underlying stock rises above the strike price then people who sold naked calls could face significant losses.
What he liked best was to just buy naked call options on stuff.
You already own the stock so you have protected yourself from the unlimited liability situation associated with naked call writing.
Buying naked calls is really a sucker's game for all reasons advised.
I still don't have a limit order in for more TLT naked calls, but I'm planning to sell more this week or next.
I also sold naked calls before finally getting out with a loss for the overall series of...
I haven't bothered entering a new limit order to close my remaining September naked calls since they aren't trading anywhere close to what I'm willing to pay to get out.
This morning, while TLT was trading at $ 122.53, I bought to close those 10 TLT September $ 132 naked calls for $ 0.11 each and paid $ 114.23 including $ 4.23 in commission.
Therefore I decided to take a trade speculating that from now this stock will continue lower and I sold a few naked calls.
When we do see another VIX print above 40, expect to see me selling more VXX naked calls or at least buying puts.
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?
I still have the 10 September $ 124 naked calls in play and want to let them run for a good profit.
If I'm assigned the first lot of 1,000 shares at $ 124 and the $ 132 calls expire worthless, I'll plan to sell covered puts out of the money and will sell more naked calls out of the money again.
That means no complex naked call writing, bear ratio spreads, calendar puts, bear calls, long straddles, strangles, guts or short butterfly or reverse Iron condor or butterfly or box spreads.
I have $ 75,000 + in cash right now and only NVDA, SLB and NDAQ naked puts sitting in my account right now (and SLB naked calls).
Designed by Fritz Hansen, it's light, stackable and has been sat on back - to - front by naked call girls as well as gracing board rooms and school dining rooms ever since launching in 1955.
I have three options set to expire in December — 10 TLT naked calls, one SPY covered call and one MDY covered call.
I also sold naked calls before finally getting out with a loss for the overall series of NVDA option trades.
A week ago, TLT was trading $ 5 higher and I sold my second leg of 10 TLT September naked calls.
Originally (this round) I sold sold four NVDA August 17.50 naked puts (UVATT) and received $ 347 and then after it tanked I sold four August 15 naked calls for $ 187 (UVAHC).
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.
This type of futures position is also referred to as an uncovered option, naked call, or naked put.
I'm a frequent option trader but at a different level, never sold naked calls or puts.
What you're describing is a covered call, not a naked call.
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.
Ricky The Risky does not own any stock but he doesn't think ABC will go over $ 25 by the next option expiration date, so he sells a naked call option with a strike of $ 25 for $ 100.
Writing a covered call can be a relatively conservative trade, while writing a naked call (if your broker were to permit such) can be extremely risky.
If you don't, it's a «naked call.»)
Selling a naked call with a strike above the current stock price (out of the money) gives the seller a little cushion if the stock does rise some.
@ Mateen — Are you confident enough about VXX being dead in the water to sell naked calls?
Naked Calls — Selling a call without being long the stock is called a naked call.
I expect my TLT naked calls to expire worthless or that I'll close them early for a few bucks.
The realized gain came from 10 TLT November $ 125 naked calls, one DIS covered call assignment and forced sale of 100 shares (this $ 200.99 net gain includes the premium from original put assignment), one DIS November $ 100 put that expired worthless, three IWM November $ 118 covered calls that expired worthless, and two FEZ puts that were assigned (these put premiums will be used to lower my cost per share and didn't create a realized gain in November).
The only thing missing for the advanced trader would be the lack of risky features like short selling, naked calls, puts and extended hours trading.
In that case, why not exercise the naked call each time because there's only one transaction fee?
You sell a «naked call
It seems to me that my transaction costs would be 2x with the spread, and while I see that time decay (Theta) is mitigated with a vertical spread, wouldn't the unbridled upside to unlimited theoretical profit of the naked call be better in the long run if this strategy is executed multiple times?
My other option is on TLT in the form of 10 $ 124 naked calls.
Is it just the difference of not being forced short of SSO if the naked calls are assigned?
Herbert - If you think the inverse ETF's «have no future» then you could short them or sell naked calls.
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