CPXGF - Option Strategies: Writing Naked Calls As An Alternative To Shorting Stocks

• One of the biggest risks of shorting stocks is getting burnt and squeezed out.
• Writing naked call options can provide a position similar to shorting a stock while having a different risk profile.
• Advantages and disadvantages exist for both of writing naked call options and direct shorting, and I prefer the risk/reward profile of writing naked calls.
• The process for writing naked call options is intricate and requires a significant level of discipline.
• Naked call options writers are also subjected to an unlimited risk but they start with the option premium as a buffer.

For further details see: