Is the course just for beginner Or you teach in your course; how to entry to the positions, what indicator to use example IV rank? Manage position? Allocation? I know is very affordable but just to make sure what to expect. I have more the basic knowledge in options. I have been trading Tasty strategies (trade small trade often). Paper money but it doesn’t work for me. Thanks for your reply
Hey Brad, great video and explanation. I would love to see a video on the three options for a LEAPS. 1.) Execute 2.) Hold until expiration or 3.) Sell the LEAPS option I’ve done some calculations of my own where I would keep the LEAPS close to expiration and it seems that executing is probably the best option with the two caveats that 1.) you would need to have the capital on hand to buy the 100 shares at the strike price 2.) immediately sell the shares at whatever the stock price is at that time of execution I would love your thoughts. Thank you and keep up the great content!
@@BradFinn Question Brad, when an option position shows up as "profitable" if you exercise it right away, does that take into account the premium you paid? Like when you exercise it, do you get back the premium and get 100 shares or do you lose the premium you put forth and just get the 100 shares in exchange?
I think the problem of this stratege is it could be difficult to sell your leap call once you want to close it as it has a very far expiration day. Normally people aren't willing or don't want to hold 100 shares for 2 or 3 years to execute the option. Correct me if I am wrong.
This is it.. As the share price goes up so does the Intrinsic Value.. At the same rate that the share price would increase. So as the share price goes up the value of the 100 shares and the value of the LEAPS goes up at the same right. The only difference being the extrinsic value that the options holds which before expiration would be less than the $28 in this case. Upside potential is the same.. down side potential has LESS RISK with the LEAPS
It isn't quite the same, but it's very close. The option won't capture the full amount of the change. This is actually what delta is (even though it's most often used as the probability of happening): it's how much the option moves relative to the underlying. In the case of the option here, it would move between 97 and 98% of the underlying. So you capture almost all of the upside. Brad mentions that he doesn't go to the common 95% (I think he said .7, so his options would capture 70% of the upward movement plus the premiums of the calls he sold against it).
Abit of mislead info from the video. If the price goes down to $50 during expiration, you will lose all the premium paid $5598, not $28 as said. Pls correct me if I am wrong.
@@roshinhr11 - If the price goes down to $50 before expiration then the premium to sell the option would be lower but not zero. It only goes to zero if the option expires. On LEAPS, you should sell about 2 to 3 months before expiration anyways because at that time, price decline would start to accelerate due to time decay (theta). You probably won’t get all the premium back but most (assuming the stock value remained stable). Or the premium may actually be higher if the stock went up higher. During the time that you are holding the LEAP, you should sell covered calls against it to pay for the premium and begin to profit even if the stock doesn’t go up or even goes down (hopefully not by too much). But with a high delta, you would have lost just as much if you were to have owned the stock outright and the stock declined in value. So if the stock does go down to 50 then you would have lost around what the premium is anyways had you owned the stock. The positive in owning the stock is you can hold it for as long as you want (until it goes back up) whereas the option will expire to 0 if you don’t sell it by expiration. But if you have confidence that the stock would eventually go back up then you can always sell the option (for a smaller premium than you paid) and buy the stock (or buy another LEAP that is another 2 years out).
LEAPS are underrated. Like you said, one of the downsides is that not every account is able to sell covered calls against LEAPS due to the Level 2 or 3 like you said. Unfortunately, this includes me at this time. It's strange that TDA will let me short sell a stock with shares and unlimited risk, but they won't let me sell a credit spread with defined risk.
I think your reasoning is not clear for people with no options experience. If the price in your example were to dump by $50 - the premium you paid for the option would dive by 97% or so of that move - because the Delta represents the change of premium for every one dollar change in the underlying at the time it is calculated. So you would still lose most of what you had put up - plus any Theta time decay that it took for the stock to end up at $50. The only "saving grace" would be that if you were to HOLD the 100 shares (diamond hands and all that BS), you would eventually lose more than the full premium you put up for the option b/c your max premium loss is 0, where as the stock can keeping dropping below $50 and causing more pain. LEAPS are not an easy ticket ride as you imply, BUT, they are a way to be involved in the movement of the underlying in nearly a 1:1 ratio without paying AS MUCH for the 100 shares outright - usually. The best directional options plays for noobs have always been spreads as they are the cheapest to put on with limited gains and limited risk.
Just found your channel this week. You do a great job explaining what you are talking about. Keep it coming. I'm trying to better understand everything to do with options and option strategies. So... yeah more of that.
This strategy is really interesting for a trader. The only thing that concerns me is for a long-term buy and hold investor. At 7:40, the only difference in immediate loss is the extrinsic value. But, when you hold 100 shares, you still have those 100 shares. Those shares could recover and will also pay dividends in the long-term.
yes they will recover.. which is why I can buy another leaps and ride the wave back up at a fraction of the cost of owning 100 shares as I discussed in the video. Once again only losing extrinsic value. Just cause the price drops doesn't mean I cant repeat the process after the option has expired and I used the 5 grands I save to makes thousands more in other places over the course of two years while those who owned the shares trembled in fear hoping it would recover.. so each their own I guess
@@BradFinn I think that there is an issue with this - people leverage and they are left with no cash to buy more leaps. lets say i have 100$, and the stock costs 1$. i can then buy 1$. there is a leap put that costs 0.5$ with strike of 0.5$(just for the example). i can then choose to buy 2 options. but when the price drops below 0.5, im left with nothing, and i have no cash to buy more leaps. if i own the stock i can wait how long that i like for the recovery of the stock
Great video Brad! Thanks for putting the time and showing us the basics with analytical explanation. Since I am a noob, I do have two questions. I thought the definition of delta for leaps, was the percentage of gain/loss for every dollar the share moves up/down. So, if I follow your example, the delta is 0.9797 means that if SBUX share price goes up by $1, you will receive $.9797. The same applies if the SBUX share price goes down by $1, you would lose $.9797. Is that correct? Lastly, in your example for IV (intrinsic value), if you were to buy deep ITM call option but then sell to close right after that, does the delta get applied to that? Meaning you would receive back the IV of $55.70 times delta of 0.9797 = $54.57. Once again, thank you (sorry for the stupid questions). Keep up the great work!
I do have a question, is the end game to sell the option itself or is it to exercise to maybe sell the covered call? If you sell the leap back for profit are you responsible for that same call if sold?
End game is to sell back the LEAPS option for profit. When exercising the option, you lose out on extra money that is held in extrinsic value. Brad has a video that explains this very clearly.
Brad, your videos are great. One thing you may want to consider is that time, itself, has an opportunity cost. Buying shares costs money, and a LEAP costs time.
New to your channel... I like it so far man, great explanations! I think one thing you didn’t emphasize is that if the stock goes down and you own outright you can wait it out beyond 2 years, whereas an option can expire worthless and you can lose the premium. Otherwise you bring up a good point and I’ll definitely look into it more. Thanks for the great content!
If the stock price falls below the strike price at expiration isn’t then there a question of unrealized loss vs actual loss if you hold 100 shares vs a leaps option ?
Bingo. I get what's he's trying to say, but your right. Worse case scenario your still holding shares if your holding the 100 shares which could go back up. With the leaps you would just lose the premium you paid for the contract with no hope of getting it back. The solution as far as I can tell is with leaps you would average down by buying another leap. That way if and when the price goes back up the 2nd leap would pay for the 1st one, and you would probably still make money in the long run. So you would want to make sure you can afford a 2nd leap in the future in case that happens. But typically the markets do go up over time which is the point of this video I suppose.
@@chasereed7141 The solution is buy another LEAP. If you can afford to buy 100 share in the first place, surely you can afford to buy another LEAP. Otherwise we will not be comparing apple to apple.
The big difference is that if in 2 years the stock price goes to $50 you still can hold and not sell until it recovers. With options you can't do that.
Haha. Please understand what your talking about before trying to criticize. Maybe crypto is more your speed. If the stock price drops, I will sell to close my option, purchase another LEAPS and hold it while the stock reviews. just like owning the stock. If you don’t wanna do it, don’t!! But don’t try to poke holes unless you understand
Agreed, I posted the same reply as you , what the youtuber is describing in his video is dangerous advice. Even if he closes his position and rolls over his leap to another two years he has lost option premium, if the stock price goes against him over the two years the intrinsic value is going to decrease as well
This would work for regular upward trend market but won’t work for bear market. Still very valuable content. Can you make a video about the strategy when the market goes down? Everyone can make money in bull market but only expert is able to make money regardless how market moves.
I like this video but idk why you kept saying the most you could lose is the intrinsic value when you can lose the entire cost of the premium if the stock tanked under $50.
In the example you chose SBUX, which has an ex-dividend date on Feb 17, so that kinda defeats the purpose of buying a LEAPS, unless you hold it past the dividend date, in which case you would be paying about 1.8 per year, while only saving 50, which is a rate of 3.6%, which is considerably higher than the risk free rate of return. You can buy LEAPS for stocks that don't pay a dividend, but if you do, you will probably have to pay about 1-2% rate for the money saved, which is not bad, but at the same time you have to take more risk to make up for that.
Thanks for sharing this information, but I think people who are new to options trading should be aware of the cons of buying DITM LEAP calls as well as the pros that you highlight. IMO the biggest is risk due to the inherent leverage. In the example you gave you of the share price falling down to the level of the call strike the loss of value would be 100% of your investment, whereas if you owned the stock the loss would be 50% of your investment. Leverage is a two-edged sword. Another point that may be significant depending on the stock is that by buying a LEAP call rather than 100 shares of the stock you would forego any dividends that were paid over the (in your example) two-year life of the option. Liquidity could be another issue, in most cases the liquidity of the stock will be much higher than a DITM option. It could be difficult to close out a DITM option, or at the least you might find that the bid/ask spread is wide, meaning you have to accept a relatively low price to get out of the trade.
I think if you are new to commenting its LEAPS not LEAP.. S is apart of the acronym.. so instead of working about all the others who are "new to this".. First try and know what your talking about :) Have a green day and thanks for your concern.
The actual difference between buying the underlying 100 shares or buying the call option is actually way more than $28. Buying and holding the shares until 2023 would also mean receiving dividends for 2 years, which is an additional income of $3.60 per share, $360 total. Option buyers will not receive any dividend, hence the very low price of this particular option.
Correct. Which is why I mentioned dividend stocks not being a good stock for this strategy. If you don’t wanna do it you don’t have to. No one told you you to. But you don’t have to troll around looking for the negatives. I mentioned the con. Be positive bud
@@BradFinn I am not trolling around bud, but added some legit color to your conclusions. If there are no dividends paid at all, the actual option premium to be paid will be much higher as well. You may check it for any stock with no dividend payment. In this particular case, unpaid dividend covered $360 out of the $388 total theoretical value of the call option, hence you had to pay only a total of $28. 2-year options are not that cheap as you show here.
Hi Brad, love from Malaysia, love your videos, subbed! Question: But what if there's no liquid to sell when too deep idm, and had to exercise but you don't have money to exercise to close out?
My mind is blown. What's the software you using to show the buy call for many companies as well as the example you show with sbux. I got this book from the money press about options. You the first to break it down like this.
Maybe I'm wrong but Delta isn't the likelihood of making money but it is the ratio of increase in option price when the underlying increases 1 dollar. This is what makes LEAPS the same as owning 100 of the underlying, Delta is functionally 1. What I'm curious about is why is anyone selling these contracts? What is the upside to the seller? They think the stock is going to go down and they can buy the contract back from the market at some point? Perhaps it is a tax mitigation strategy. Hold the actually shares for more than a year to lower your tax liability while still generating trading revenue.
Delta carries many assumptions and approximations. You gave the technical definition, which is correct. The seller collects premium for 1 and can profit in a few other ways as well.
Thanks for the videos Brad, I enjoy them. I do have a couple of questions. A LEAP is exactly the same as buying a call option, just with an extra long time until expiration, right? The goal of your example is to find a call option where the current share price - strike price almost equals the preium, right? And this is only intended to be used on a solid stable company that is likely to still be in business in two years and increased in value, right? In the case of a more speculative bio-tech type company that might soar it would make more sense to just buy a cheaper OTM call to minimize the options preium risk in case they go under, right? Thanks for sharing your knowledge.
If you want to short a stock, it works the other way too with in-the-money puts. You also have the added bonus of shorting without the infinite risk thing.
Great video Brad! One additional benefit that you kind of glossed over is that over a 2 yr period the stock is likely to go up as well where you'd be able to leverage your premium to leverage the stock gain for 100 shares. See you in the discord! (Double troll voice, gotta love it!!)
So if im understanding this correctly. Your spending alot of money , deep in the money. Knowing the stock will go up. And its so far out that the value of the loss is negligible, and with that in mind since your buying so deep in the money, so long as that stock is gaining, your call is gaining?
In other words, if you are planning to hold a 100 units of any stock for a min of one year, then can get the same amount of profit of the stock for almost half of investment by buying the long term call options instead of buying stock as brad mentioned... hope this give you some idea...
@@kendnear agreed, when you buy back you have to pay the premium.. premium going down 50% one day may happen on the day of expiry or if the stock tanks all of a sudden...
Great video! I’ll definitely need to rewatch this and make some notes. Appreciate the way you explain things....you have been my go to for options. Hoping to feel confident enough soon to start options and learning new ways to leverage.
So you sell short "covered" calls against the long leg as you would if you owned 100 shares of a stock. What do you do when the stock reaches a level you would normally sell your 100 shares that you own outright to collect profit? Do you exercise the call and pay the strike price then sell the shares or do you just sell the call? Sorry I don't know if the call premium would be equal to the current stock price minus the strike price (plus a premium, extrinsic value for the buyer end). This seems like it would be the case. LEAPS are definitely the way, I wish I knew sooner before I bought 100 shares of a stock, I will be doing LEAPS from now on when I want to own 100 of a stock and sell calls while the stock (hopefully) rises.
i tried doing that. It's good. But i found a method that's better. Instead of paying $55.98 to buy SBUX Call option of $50. I'll divide to 2 = $23 And i'll buy 2 contracts of $95 strike price call option. Overall I'll have higher growth but the downside is my breakeven will be higher...
Nope.. not worries about that to much.. liquidity would definitely lower the more in the money it becomes over time. Im already factoring in the complete loss of the extrinsic value so I've if there is no sellers I can just exercise, extract intrinsic value, give up extrinsic value, and then sell the shares at the current market price. all I would give up there is EV which I already factored and this would be the same return as if I owned the 100 shares and wanted to sell at that price at expiration at market value. And like I said Im not worried about losing the EV when I exercise because I have made that EV back multiple times over with the money I freed up by not buying the shares. And the deeper ITM it goes the less EV will be. So I guess that is a long winded way of saying. If I cant sell (which may be likely if its deep ITM) Ill just exercise and go from there. Hope that answers your question.
Hey, so great video BTW! I think I understand. But when you get closer to the long call expiration date, do you just sell that long call to get the money back that you put down for the premium? I understand I'm going to make short calls out of the money during the meantime, but how do I get back that premium cash amount I dropped for the long call?
@@NFTMule to do it on webull, you have to have a margin account. You don't have to use margin, but you need a margin account to apply for level 4 options trading
Hey Brad great video! appreciate your effort in educating your viewers! Question here: what would be the downside if the covered call that you sold got exercised?
Thanks for the video Brad. I follow the math of it and understand making several covered calls on in over the 2 year period. But what needs to be done with the buy call near expiration?
@@BradFinnI guess I am asking what would be the best course of action if it is in the money vs not? BTW I am very new to this so please excuse me if it's a dumb question.
Upon assignment of a pmcc, do you need to have the funds on hand to cover the exercise of the long leg? Or does it all work out on the brokers' end like a regular spread?
You are not alone If it was easy it wouldn't exist There has to be a cost and piecing it all together until you get it is the cost, guess what, there's always more to learn. Even these guys are learning Good luck, never give up, never, never give up
@@JeffChapa I actually found a video from the channel InTheMoneyAdam on LEAPS and now I have a full understanding of options. Turned $200 Into $1700 in 2 days.
I understand your reasoning for LEAPS; and enjoy your content. I am currently listening to a youtuber who strongly encourages owning [25, to] as much as 125 shares of a stock (I am heavily invested in his approach). Overall, Developing an LTR with a company is the right plan of action to undertake. Options **trading** is simply not on everyone's radar; but, it IS a good thing to dabble in them, for quick profits, and a viable supplement to anyone's portfolio.
Dear Brad, I don’t understand how you can sell covered calls with a LEAP. You need to have 100 shares in hand to sell a covered call. What happens if your sell call gets exercised? How does the LEAP cover this situation? Excuse my lack of math. Regards, Jennifer
This video is on a LEAPS not a diagonal spread. Check this video out for the explanation ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-JDcBrrT_Kws.html
Why doesn't he mention how if the price goes down to $55 when you own the 100 shares of stock you still OWN the stock and can hold and wait for it to grow and also write call options in the meanwhile to continue collecting premiums. But if it goes down to $55 at the expiration date of the option he bought he ends up with ZERO. Way more risky
Since this is a two-year call, I suspect the purpose here is to hold this for a period of time, squeeze premium out of it and eventually it off at a later point in time well before the expiration date approaches. Its almost like using margin to buy more shares and get more return, but using a different method
Great video man! Very informative. What happens to the option if the stock splits? I'm new to investing so im curious if this nullifies the example you provided in this video.
Big big big difference in risk between the leaps and owning the underlying stock. If shit hits the fan and those calls expire worthless, you have nothing. If you own shares, you just forget about them until the market turns (if it's a good company). The risk is actually much greater long term with calls, especially in this environment that seems primed for a pullback
Exactly what I was thinking. I’d rather have a stock that has retained half its value and may still be paying me a dividend then have literally nothing.
I think the best part about this is, buying the deep ITM is half the price of the stock, therefore you're paying to own the leap with a theta thats .001, then you collect premium selling the call, so its not like you have to have collateral to sell that call. Do you prefer selling weekly calls against the deep ITM call, or going a few weeks out and collecting more premium and same delta under .3?
@@BradFinn thanks bud. Been cramming all morning and I think I understand it much better. What really helped me are the heat style index matrices that show me what my profits or losses will be at certain stock values over time. Now I need to find the best stocks to find LEAPs. Maybe an S&P index.
the fact that you are here at all shows you have interest and an inquisitive mind.. the ability to learn is true intelligence.. just watch the vid through several times and you will understand more as you unlock little pieces... you can do it!
Thank you for the video. I was going to do a PM covered call this past week for the first time, but decided not to because I am not sure what happens when the strike price is met. Is the deep-in-the-money position closed in lieu of the shares, or you are made to close it and buy 100 to sell to the buyer at expiration, or you are shorted 100 shares out of your capital...probably more questions that I don't even to ask. I don't know the mechanics of how this would work, or if you are just saying one has to simply buy back the contract before expiration without fail. How does that part of this work? I love the idea!
you also missed the fact that $1 rise in share price will have a higher % ROI on your investment. I use this method often and sell atm calls to collect more premium. Make sure that the total debit paid is between 60-75% of the strike different. So if your leaps strike is 50 and you sell the 105 calls ($55), the debit you pay is 60-75% of the $55.
Brad, first thank you for being so amazing!! Q? If I sell a poor man’s covered call above my break even on my leaps, and I am assigned on the covered call, what happens? Automatically sells my leaps for that strike at which I sold the poor man’s call? Thank you 🙏
I'm learning so much thanks to you! I'm actually starting to explain this to my father. My only question is the following: What would happen if my covered calls expired in the money and my shares get executed? I don't own the shares doe so what would happen in this escenario?
If your covered call gets assigned, you'll have to (probably automatically depending on brokerage) exercise the call option you bought to *cover* the covered call. Meaning you exercise your option to buy the shares and immediately sell them to cover the call you were assigned.
In the example owning the LEAPS... if the stock drops to $50, then the option is worthless, but not yet expired. However the following week should the stock recover to say $60, that option is still good correct? I'm trying to understand.. even thoigh the stock drops below the strike price it still hasn't expired..
Ur Videos are excellent I'll be joining your Discord today, my only suggestion is if you were to number or date your videos's to make it easier to go in order, I discovered your video's last week and have been watching them I just have to figure out the best order to watch them by the title. Unless I'm mistaken I believe your poor mans options spreads are also called Calendar spreads. Again thank you for all ur great info.
Brad, using LEAPS at $50 strike at $105 share price, when the stock price dips to $50, wouldn't the intrinsic value decrease also? If not mistaken, your explenation looks like saying that the intrinsic value stays the same. What do you think?
If the stock price goes to 50, intrinsic value will go to zero. You'll have lost about the same amount of money as buying the stock. But if the stock continues to decline, you keep loosing money if you owned the stock. So max risk for stock ownership is $10500, max risk for leaps is $5528 (what you invested.) LEAPS is clever because you reduce downside risk, reduce the capital required to buy the stock and capture all potential upside for just $28 of extrinsic value in the example.
@@realsolarcars That's true but if you invested 100% of your capital (rather than a portion of it) and the stock declines to the strike price at expiration, then you'll lose all your money. If you invest 100% of your money as stock instead, you'll still have $ left.
One big risk you don't address enough though..... When you own 100 shares and the share price drops to $55, you don't really "lose" ($105 - $55) x 20 because you still OWN the 100 shares of SBUX forever. If the market tanks within the next 2 years and takes a few years to recover, your LEAP will expire worthless or a fraction of the value. However, with holding shares, you can let the market recover and still make money.
So what could keep me for buying another LEAPS at the time of expiration at the new "$55" share price and riding it back up with the person that held the shares, generating gains in intrinsic value and recouping all the "loss" from the first LEAPS expiring worthless?? Even in this case.. I am still only at a difference of $28 EV from the first LEAPS.. and whoever the EV is on the new leaps.. during which time I have made back with the money I saved by not buying 100 shares.. I can buy leaps back to back to back.. and ride the ups and downs the same exact as someone holding the shares... So I didnt address that, because it isn't a risk.. I did address the LEAPS expiring worthless and stated the risk being the lose of EV
@@BradFinn yes you could do this and possibly end up at the same spot as the person holding the 100 shares of stock. However the person holding the 100 shares of SBUX would have been collecting dividends ($1.80 per share x 100 = $180 per year x 2 years = $360) during those 2 years.
when doing options for example for AT&T do u still receive dividends when holding the call options? and do u know as T stock is merging with discovery, when holding options if we will receive stocks for the new company?
How do you know which option to pick? If they are that far out and that deep in money there is rarely any volume or open interest or does it not matter?
People really gonna get hooked and smacked in the face when they realize short leg being exercised doesnt mean ur long leg is exercised you will be short -100shares per pmcc option
@@BradFinn I realize that.. I'm asking if doing a leap on a stock that has either monthly or weekly option capabilities matter with doing a leap option as far as the premium paid when executing a leap option? Thanks
You make a good argument. I would say one main benefit over the leap is if the bid ask spread is wide on the leap over the stock itself. Also some brokerages wont let you do pmcc on a roth ira (like vanguard)
@@BradFinn I haven't heard of any roth that lets you trade spreads because it's theoretically using margin if you need to exercise your short call. Think or swim or tastytrade might let you but I'm still waiting to hear back.
I just joined your page very helpfully fr .I have had Ba leaps otm calls for a while and down almost 50% .my question what happens when you do covered calls from long call that is otm?
Good video. I've been watching plenty of these. But to the new kids out there. The reason his extrinsic premium was so low ($28) is because the stock was deep ITM with a delta of .97 if you get a lower delta of like .80 or .70 you will have a higher premium but it's still not going to break the bank. I think on my apple contract its like 800 bucks (8 bucks per contract) but you will pay much less overall for a lower delta contract too.
Why would you do that vs routing a ZEBRA? I could never understand why someone would want to buy a leap when they could buy a ZEBRA. I either route a ZEBRA if it is a low IV equity or I buy a lot of stock in pieces trying to cost average down on dips if the equity has high IV. For example you could buy 15 share chunks every time it dips to a known support area then start piling in harder if the support fails. This will allow you to control your risk in pieces, cost average down your position over time, and protect your capital by losing less if the equity dips in price. As long as the position holds high IV once you obtain 100 shares you can always lower your cost basis even further by selling a call against it. A third option for an equity where the IV just exploded and it is at a price you want to own a lot at is to do a buy write which will only complete if both trades the stock lot and the call you are selling against it will route at the limit price you set. That lets you take advantage of the IV now assuming it is abnormally high at that point in time.
what is the pro and con for PMCC and sell naked call? seems like large of the captial locked that using PMCC. like you have $7500 account, one trade take 5500 for two years, then how you can make money by just doing covered call ?
Option contracts adjust with stock splits. In your TSLA example, if you had one option at k=$1000, at the 2:1 stock split, you'd now have two options with a strike price at $500. In other words, splits don't affect your options (at least not in this sense. Splits usually come with a bit of bullishness).
Hey brad I figured you might know this and actually respond. I know to sell a call you need 1 shares unless you do a poor man's covered call. But I heard of naked calls where you don't own any shares. How does that work? is that the same thing as a poor man's covered call?
