The Short Naked Call is a great strategy to trade in periods of High Implied Volatility, when your assumption is Neutral to Lower.

Your risk is “undefined”, so Naked Calls are not eligible to trade in an IRA

In this video, we will walk you through how to:
1. Evaluate Implied Volatility
2. Find an underlying symbol to trade
3. Locate the correct strikes to trade
4. Analyze the trade
5. Place the trade

Here’s the metrics we look for when trading Short Naked Call:
  • Market Assumption – Bearish
  • Implied Volatility – High
  • Trade Setup: Sell One OTM Call; 30 Delta
  • Profit Target – 25-50%
  • Downside risk – None
  • Upside risk – Undefined
  • Probability of Profit – Over 70%
  • Time Decay (Theta) POSITIVELY impacts this position
Watch the video below to learn more…