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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: options101 who wrote (763)	6/16/2007 9:21:21 PM
From: Robohogs	Respond to of 5891

Your trading sounds a bit like mine except I have to use a smaller account approved to Level 4 for the short calls. I have found having both sides of the coin can itself act as a bit of a hedge - have to be willing to initiate at further up/down strikes though and rebalance. I usually only get naked on calls when the pricing on the calls seems to hold up too much - almost got burned in MNTA (wish I had gotten burned actually considering what it would have done for naked put positions and levels where some of the other covered calls were struck) when it popped through 12.50 strike on Thursday. Immediate selling took it back to 12ish for Friday and never in danger. Naked selling of calls is inherently not that much more dangerous than puts in my mind, except for fact markets usually go up. In this market of past year, selling calls long-dated and not closing out would have killed one on general market, no doubt. But think about put strategies and early 2000s. Short puts is simply a long strategy and short calls a short strategy. Jon