Damn son if you have to ask a question like that then you definitely don't need to be trading options let alone writing naked calls;however now isn't that bad a time to do it as long as you are doing front-month options. I could recommend you a few sites and books to review but I don't want to violate any board rules so just Google commodity options trading or some such and you should be pointed in the right direction. But to finally answer your question...you place a buy or sell limit order to buy or sell the option at your predetermined price. For example; say you sell a Feb. 370 call with 14 days til expiry for $100;you immediately place a buy stop limit order for say $125 or whatever you choose. This means that you are risking $25 to make $100 but this wouldn't be a recommended trade for such a volatile market.
Lasner, I saw your other thread asking whether gold options trade overnight...what happened with your position? I hope you didn't get hit too hard.
No not at all I got out today and broke even....it's just not worth it though. Someone just responded about how to set a stop....I may look into that. I have experience trading about eight years just not with options. I'm just looking for different ways to add income. If I can set a very secure stop I may look back into it.
"Damn son if you have to ask a question like that then you definitely " The BIDU debacle is why it's dangerous to write naked options and hold them overnight. Writing them intraday is not bad at all...not much news to really move the market and then stops work but overnight WAY too much risk (unless you hedge overnight).
I would simply do an iron condor or credit spread of some sort, which would pay you income in either direction provided the underlying goes your way!! Either way, you would still make a profit if it contains and you wouldn't risk as much if it doesn't!