I know there are plenty of put sellers out there (ouch) and some that do both ends either naked or as condors. But does anyone know of traders who do primarily call writing? I know it's lower gap risk (for the S&P) but lower premiums, too. So anyone just do naked calls on S&P futures? Caveats?
I do both sides. IMO, the call side is far tougher (if you're talking naked.) Even hedging is more expensive on the call side. The big problem is that a significant up move is not accompanied by a rising VIX. In fact, the VIX is usually declining when we move up with any conviction. This causes premiums to shrink even further across the entire spectrum and makes rolling and split-rolling tougher. With put writing, the rising VIX makes rolling easier. This just applies to naked writing - once you start hedging and using spreads, it's a whole different game.
I spent 5 years writing call premium on the S&P 500 futures. There's alot of $$ to be made doing it. Unfortunately, I choose the wrong five years as it was from "95 - "00 when the market went straight up. I'm still leery of writing naked calls in equity indexes...pefer call diagonals and risk verersals and apply them on days of sharp sell offs.