A System for Selling Naked Calls with Exact Entry and Exit Mechanism
Obtain a Systematic Method for Net Worth Building Selling Naked Calls in a Prudent and Shrewd Way
Eliminate Worry Traps of Selling Naked Calls and Give Yourself an Edge for Draining Options Premium into Your Trading Account in a Repeated Way
So You’ve Heard Naked Puts are “Risky” What is the “risky” the talking heads and brokers are clamoring about exactly? I’ll tell you what’s risky!
- Not knowing what you are doing – not understanding what short calls, “naked calls really are
- Over leveraging
- Not knowing how to enter a position
- Not knowing to, or placing a stop loss of any kind
- Not recognizing the inverse delta effects of shorting an option leading to deer in headlights syndrome.
- Not knowing when to get out with profits.
- Trading too big, over leveraging
- Using margin
- Not knowing which options to sell
- Not knowing when a short option is more likely to get assigned to you
- Not trading a system…
That’s risky. Let’s clarify things here. It’s still pretty amazing how little financial media and other options educators seem to know or understand about options trading.
Let me explain something right now that may burst a bubble that was built up through shammy or simply ignorant options marketing over a few decades: Options Strategies on Their Own Do Not Make Money! Trading options strategies for the sake of trading options strategies will likely lose you money.
Options are derivatives of stocks. This means that options derive their value from the underlying stock! We can’t ignore the stock! The stock gives the options value! We must trade the stock!! So we trade the stock and then simply use options, an options strategy instead of stock.
Covered calls can be great especially with our Covered Call Mastery and Covered Call Extreme Programs but what if you could make covered call writing a lot more simple, and remove the ‘baggage’ of the stock!
Who says you need to own stock to sell calls! Why is it more ‘safe’? Well I’m hear to tell you right now that selling covered calls is NOT more safe and selling naked calls our way IS MORE “SAFE”.
What the heck??
With covered calls as an options strategy, you have “baggage”. That baggage is the stock. You need to deal with the stock: 1. if the stock goes up and you don’t want to get called out and 2. If the stock goes down – what are you going to do??!
With naked calls you are specifically playing sideways or down swing moves. You only have one thing to worry about – the naked call!
Unlimited risk? Not with our style of stop loss! Unlimited risk on a covered call? YES! (well until your stock hits zero – any 2008 and prior GM shareholders can tell you about “zero”. ) Although you could put a stop loss on your stock. But will you? Do you know where to put it? You’re likely to just let the stock keep going against you even if your selling calls.
Again what makes a covered call ‘safe’ and a naked call risky?
- A lie
- A vague notion that ‘stocks always go up over the long run’ (who came up with that!!) so you can try and get lucky by selling some out of the money premium on your current holdings…
- People saying this are also assuming that you are invested in your stock with 100% cash
- 100% cash is the key – why not use 100% cash to sell naked calls – 100% of the stock value! Duh!
- Most people, talking heads on the media do not know how to trade. In a down trend you certainly do not want to be holding stock. It is much easier to sell naked calls all the way down – but you need to know how! And that’s where Naked Calls Extreme comes in!