2 matching records.
Selling naked calls on stocks with call skew can be advantageous due to higher pricing in the market.
Dylan is currently short a naked call on Tesla (TSLA) with a strike price of 430. The trade was initiated after rolling down from a previous position, and the stock has been volatile. The strategy involves managing the position by potentially selling an out-of-the-money put if the stock declines, or rolling the put higher if the stock rallies. The trade is considered a naked call, which carries the risk of unlimited losses if the stock price rises significantly. The trader is using a $50,000 account, and the trade is being managed with the understanding that adjustments may be necessary based on market conditions.