Selling Naked

[nikko309]

Quote from wiesman02:

Make sure you have all your clothes off when clicking the sell button. Having underwear and socks on does not count.

You stole my thunder!
Was just going top post the same

 

[nikko309]

Quote from XM911E3:

Ok think I got it already. So if my strike price is $75, the market went up all the way to $77 and stays there sideways, on expiration Friday, $0 credit cause I will be assigned to buy the stock back at $77 and sell it to the buyer at $75. Hence loses $2 per share ( 100 shares ).

If you sell the 75 call and it's assigned, you will be short the stock at 75. Your $2 loss comes from selling the stock at $77 (less the original premium received).

As advised by others, read as much as u can before diving in.

 

[Eliot Hosewater]

I am surprised that no has pointed out that selling a naked call is considered the riskiest option trade. Your loss is potentially unlimited.

Like the coach says, read a book or two first.

Also, you first need to fill out your broker's form for adding option trading to your account. If they let you sell naked calls with zero knowledge or experience, maybe you can sue them.