Selling naked calls.....

All the above calculation is based on the assumption that SPY did not move when you are covering. If it goes to $510 , your gain will be $200-$100=$100 and if it drops to $490, your gain will be $200+$100=$300

 

Long on options: you lose 90% of the time but that 10 percent makes up that %90 loss.
Short on options: you make money %90 of the time but that %10 wipes it out.

 

I'm suffering a shedload of short calls right now -took my eye off the ball and now have more short deltas than underpants

 

Cease-fire talks progressing.

 

Good for going naked?

 

Bad for short calls if something is agreed (upon).

 

These are not naked calls- ratios some some mitigation but didn't expect the Bank of bloody England to be juicing the market to help the failing Tories.