When it comes to options trading, it doesn’t get much sexier than playing it naked. No, I’m not referring to what you wear (or don’t) when you’re sitting in front of your computer trading (that’s your business alone). I’m talking about naked options writing.
While covered options writing (“covering” your option writing risk by owning the underlying stock) is a conservative strategy that offers only part of the benefit of options writing, naked options writing (selling options without the stock covering your position) allows you to reap all of the benefits and profit potential option writing has to offer.
It doesn’t get much sexier than that, people!