Stocks drop...I am hearing from MANY of you (my email box is lighting up!), who were net long this market USING NAKED CALLS. First question: Why!
IMPORTANT... When you BUY a naked call you MUST be right on not just the direction of the move (higher), but you also MUST nail the timing of the move-this is difficult.
Using a Credit Spread you DO NOT have to NAIL the direction- (to a certain degree if you set these up correctly AND this is precisely why I post my own spreads ON MY WEBSITE- TradersChoice.net for you to use as a guide). Very importantly! Using Credit Spreads, THE FACTOR OF TIME IS ON YOUR SIDE! Why? Because you are a net seller into the market, time decay becomes your ally. PLEASE LEARN CREDIT SPREADS.
Link to my website. Click HERE: https://www.traderschoice.net/
Why would anyone do that? Crazy, not to mention you are doing spreads which means that the market moves in any direction. WOW.
strange to read this)
Thanks for information and updates.