I also
sold naked calls before finally getting out with a loss for the overall series of...
I'm a frequent option trader but at a different level, never
sold naked calls or puts.
@ Mateen — Are you confident enough about VXX being dead in the water to
sell naked calls?
Herbert - If you think the inverse ETF's «have no future» then you could short them or
sell naked calls.
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.
@JoeTaxpayer - I can just tell you from my experience in
selling naked puts /
calls and with my broker.
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.
Some investors have a hybrid strategy of
selling naked puts until they are assigned (so now they own the stock) and then turn around and
sell a covered
call at the same strike.
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).
Did you know that
selling naked puts has the same P / L profile as
selling covered
calls?
Naked Calls —
Selling a
call without being long the stock is
called a
naked call.
Naked Puts —
Selling a put without being short the stock is
called a
naked put.
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.
Selling a
naked put or
call potentially has unlimited risk.
JC: We
sell far out - of - the - money
naked puts and
calls, as well as strangles and condors on about 10 different commodities.
If assigned a stock from a
naked put, I immediately
sell a covered
call on it the following trading day.
I was able to bring in $ 2,069.17 in premiums today by
selling calls on TLT, DIS and IWM and rolling my DIS
naked put higher.
A week ago, TLT was trading $ 5 higher and I
sold my second leg of 10 TLT September
naked calls.
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.
Selling the
naked put at the same strike as my covered
call, making this a straddle, guarantees me to have made the correct decision on one of the trades.
I should've waited longer probably, but decided that since I am only
selling six puts that would cost me around $ 5,125 (subtracting the premiums I received) I could
sell covered
calls if assigned while also
selling new
naked puts at a lower strike to dollar cost average down some and reduce my per share price.
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).
The premium you can collect on ETFs by
selling naked puts or covered
calls is usually less than what you can collect on individual stocks.
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).
The other way to look at my
selling covered
calls now is that I have a couple of bullish put spreads and
naked puts in my portfolio and if the market keeps climbing as a whole, I'll have my profits there too.
I'll have a realized gain of $ 201.20 from the first
naked put assignment and this covered
call assignment even though I'm
selling the shares for $ 5 less than I paid.
Ever since the banks started attacked OSTK by manipulating the market with a practice
called «abusive
naked short
selling,» Byrne has publicly made it his mission to fight Wall Street corruption.