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Well, you could have bought Enron stock, and not received the put premium. I asked a guy at Schwab why they let anyone own a naked stock, but you must be "qualified" to sell a naked put. He tried to explain why naked puts were riskier.

Well, mathematically it works assuming two things: - you have unlimited $$$ to keep doubling with each loss (in which case you wouldn't need to be doing this); - you win eventually, then start again. That's why casinos have table limits. Edit: I actually saw someone a few days ago...

Yeah, I was going to add that I would never sell a NP or CC without some OTM downside protective puts. I guess that's still a spread (or a collar in the CC case?). I never owned Enron, but I did own a few shares of Worldcom, and way too many shares of NXTV, which peaked at $202 and finally...

Thanks cnms2. Looks good.

Thanks Steve and Don. Maybe I'm making things too complicated here. My original idea was to generate some income from the spread premium. If I got assigned then do covered calls. Since I do have a lot of cash maybe I should just plan to write CCs. I could still do short term NPs to get a...

I'm just getting started (again) with options. I bought some OEX calls in 1987 and have a handful of single-sided trades since then. Now I am planning to try to generate some monthly income by writing spreads, most likely put credit spreads. Is there anything wrong with letting the short side...