Naked Calls EXTREME Naked Call Selling System .pdf
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So you think selling naked calls is risky huh?
What is “risky”?
I’ll tell you what’s risky!
1. Not knowing what you are doing – not understanding what short calls, “naked calls
2. Over leveraging
3. Not knowing how to enter a position
4. Not knowing, or placing a stop loss of any kind
5. Not knowing when to get out with profits.
6. Trading too big, over leveraging
7. Using margin
8. Not knowing which options to sell
9. Not knowing when a short option is more likely to get assigned to you
10. 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
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
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?
1. A lie
3. 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
4. People saying this are also assuming that you are invested in your stock with 100% cash
5. 100% cash is the key – why not use 100% cash to sell naked calls – 100% of the stock
6. 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