02-15-2019, 04:57 PM
(02-15-2019, 01:55 PM)fenders53 Wrote: Right, but you do need the free capital in your account, or a margin account and authorization to trade naked options. Something I would never recommend as it ends bad at some point when the market turns on you. For younger traders with lower capital, the cover call still provides some opportunity to trade with a conservation strategy. That's what I did for a lot of years. I know crimsonghost already does this from time to time.
Sentence 2 does not compute unless one is undercapitalized for the trades they are making.