Mechanics
·
10 min
The short call: naked and covered
Selling a call collects premium and accepts an obligation. The shape of that obligation changes by an order of magnitude depending on whether you own the stock.
In this lesson
- Covered: you own the stock
- Naked: you do not own the stock
- Why naked calls are the most dangerous trade
- Practical guidance
Read the full lesson in the app
The complete lesson, with worked examples, callouts, and a quiz to test yourself, is in Iron Condor Options.
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