11 Secrets of Naked Option Writing

#3 – Don’t Buck the Trend

Top 10 Options Trades for 2011

Your profits will be much greater in the naked option writing game if you write calls when the underlying stock is moving downward, and write puts when the underlying stock is in an uptrend.

The best way to project this type of price behavior is to look at the underlying trend of each of the optionable stocks.

Never buck a strong uptrending stock, or in Wall Street parlance, “Don’t fight the tape.”