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11 Secrets of Naked Option Writing

Here's what you need to know before you get naked

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#2 – Write Naked Call Options in Bear Markets; Write Naked Put Options in Bull Markets

bulls and bears

Top 10 Options Trades for 2011

This secret of naked option writing is self-explanatory. To improve your probability of winning in this game, it is far wiser to write calls when stock prices in general are moving down, and to write puts when stock prices are moving up.

This strategy will put the odds in your favor. However, writing naked call options in bull markets can be profitable, as can writing naked puts in bear markets, because of the inherent advantage the naked option writer holds.

By following these rules, you will improve your probability of winning the game and reduce some of the risk.


Article printed from InvestorPlace Media, http://investorplace.com/2011/08/writing-naked-options/.

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