I posted the following strategy on another forum; however, I did not get any response. It seems that there are several experienced options traders at this forum. Please provide your input on what I believe is a sound strategy listed below: An individual could have been making about 15% - 20% per month writing (selling/shorting) naked call options over the last 3 - 4 months. If after a huge upswing break-out, one would write a call option in/at-the-money, it would yield a reasonably safe return. The common belief that selling options, especially calls, is VERY RISKY is a "red herrin". Although one is allowed to sell puts in an IRA, the selling of calls in an IRA is disallowed. The logic is really unreasonable. Although the market trends upward over the course of time, the reality is that it plummets in a short span of time, but rarely skyrockets in a short span of time. I would be VERY NERVOUS selling puts because any number of "black swan" events could occur that send sheer panic thru the market; thus causing a castostrophic collapse of the market. In the selling of calls, one need not worry about any geo-political or natural disasters, as such events would only secure the position of an individual who sells calls. Now the obvious question.. what if the market goes up against my position, especially if I'm selling ATM or ITM? Good question... that's where the notorious martingale system comes into play. I know, I know any mention of the word martingale is considered an anathema of the worst kind; however, if used in moderation and with discretion, it can be a powerful tool. So, how would I use the martingale strategy? Well, I'm glad you asked... if the trade goes against you by twice the value of the premium received, then cut your loss and sell twice as many contracts/lots. Remember, the entry point comes after a big break-out, and the 1st liquidation after a 8% - 13% increase on top of the break-out. HOW MANY TIMES HAS AN UNDERLYER RISEN MORE THAN 30% IN A MONTH? HOW MANY TIMES HAS AN UNDERLYER FALLEN MORE THAN 30% IN A MONTH? Euphoria will cause the market to rise slowly, but consistently, with a few sharp upward surges. However, fear and panic will cause the market to plummet in a fast freefall!!!