In-The-Money Naked Call

The in-the-money naked call strategy involves writing deep-in-the-money call options without owning the underlying stock. It is an alternative to shorting the stock when the trader is bearish on the underlying.

It is a Limited Profit, Unlimited Loss strategy. Not recommended for Beginning Traders.

Out-Of-The-Money Naked Call

The out-of-the-money naked call strategy involves writing out-of-the-money call options without owning the underlying stock. It is a premium collection options strategy used when the trader is neutral to mildly bearish on the underlying.

It is a Limited Profit, Unlimited Loss strategy. Not recommended for Beginning Traders. Slightly less risky than the above ITM Naked Call strategy