Naked Calls, That's All He Does.

Discussion in 'Options' started by Arnie Guitar, Mar 29, 2025.

  1. An acquaintance...Doctor,
    Says it's all he does.
    No real reason to doubt him.
    Not really a bullshitter.
    Writes several months out, doesn't wait for expiation.


    Hmph.
     
  2. I once mentioned buying some higher Calls for at least some protection.

    He said, "That sounds interesting", as if to pat me on the head, hand me a cookie and go play with the other kids.
     
    Handle123 and Sekiyo like this.
  3. Tokenz

    Tokenz

    Well if you really believe him then give it a shot.

    I know too well that there are many fakes out there that try to pretend like they are living the life of a pro. I've always been a firm believer of never telling anyone about my trading but to each their own
     
    nq whisperer likes this.
  4. I don’t have the stones for it.
     
  5. maxinger

    maxinger

    You did not write the most important sentence at the end of your writeup.

    > 90% of the investors/traders lose $$$$.


    _________________________________

    An acquaintance...Doctor,
    Says it's all he does.
    No real reason to doubt him.
    Not really a bullshitter.
    Writes several months out, doesn't wait for expiration.
    And he keeps on topping his trading account / And his account keeps on growing.


     
    nq whisperer likes this.
  6. Just a couple of points:

    When I said it's all he does,
    I meant the only type of trading he does.
    He still works full time.

    As for me, I am kinda lying a little bit.

    I often, and am currently a little overwritten on a few stocks.
    It depends on the situation.
    Are all or most of the short Calls OTM?
    If they're all ITM, then, No, no overwriting.
    But if all the short calls are OTM, then I'll dip my toe in the water...
    Never more than 1 contract.
    I can see being 40 or so shares short and overwriting.
     
  7. Selling insurance for that option premium collected generated is generally safe.
    Doctors like that proposition, matches their personality.
    If things become and feel dicey you can always bail out...buy to close the position

    It is what it is, but it's not free magical money or anything. Risk vs reward and everything out there is priced accordingly.

    The secret knowledge process light is knowing the future because both sides are placing bets...and only one person will win and benefit in the end of the trade transaction
     
    Last edited: Mar 29, 2025
  8. mervyn

    mervyn

    nothing wrong with writing otm calls, in combination of writing otm puts, they are called short strangles, so long you have cash the margin it. it requires the highest level of option trading approval i believe.

    and if he have a sense where the stock will be within range, he will be fine. on the opposite, pelosi deep itm calls is also popular.
     
  9. S2007S

    S2007S


    Whats wrong with that. I have done naked calls since 2024 and continue to do them in 2025. Everyone says they are the most risky options you can play, I disagree, if I'm willing to short a stock whats the difference if I write a naked call against it and collect a premium while doing so. Last naked call option was BOIL. Walked away with a nice profit.

    The only thing I have to be careful of is selling naked call options against hard to borrow stocks. Other than that I will continue to sell them all day long.
     
  10. Looking at tonight's Futures,
    I'm more concerned about my OTM Puts
    that I'm short than the nekked Calls.
    That PLTR sitch is not good.
     
    #10     Mar 30, 2025