If you gonna do naked, do it in instruments that wont move extremely hard one way or the other, no mergers and acquisitations, no analyst upgrades/downgrades, no bankruptcy etc. You get the idea, ETF is a good place to start.
But ofcourse that means the price is lower as the risk of lower which means less profit for your commision expense, or buying nearer the money so increased risk. Obviously no earning of expected news is wise. Considering putting a few K into an account and giving this a spin.
Why not trade minis AND sell options, do both strategies in a small size so you are not risking your entire account, and test what works best for you?
They believe is risk free therefore easy money, sadly if it was easy money we would all be doing it. If i had enough cash to put at high risk to open an options account, it's how I'd likely play the game, weekend before options, research and line up 10 stocks to short puts and calls on, then monitor vaguely over the week, bailing if any look scarey. Could be easy money and quick account growth.
Having enough capital to do whatever strategy you want to play small is the right move in my opinion. Many people on here trade minis with sub $50k account sizes, which, for me, is putting too much of your account in one trade. But I suppose it works for some people. If you have a smaller account than that and want to test out selling calls, you can focus on some of the smaller ETFs to start. XRT, XHB, USO, UNG, SLV.....
If i was to have a go, it would be using the min required to open an account. I'm poor but trade $20 per point area with a 4k account go hard or die poor! Maybe both
Haha, well, if it works out, soon you will be trading $20 per point with a $10k account, which is a bit safer.
I always trade near my margin intentionally, i use margin call as a secondary I'm having a stupid day SL so I will be $50 area or I will be sensible and reduce margin lol no chance.