Letâs say that you have sold 100 naked calls in XYZ at strike 100 when the stock was 100. Suddenly the stock moves up high to 150 and you have a loss. You think the stock will move down again at some point so you do not want to take the loss but you want to set a maximum limit to the loss now. What would be the best and cheapest way to do that? Buy 100 calls at a higher strike fx 180 â the higher the cheaper premium but the higher maxi loss. Or?