With a big down day I just sold 10 Naked Calls on RH. With the stock at $147 I sold 10 Naked 6/29/18 $150 Calls for a premium of $2 for $2000. RH is a very volatile stock so I protected myself by placing a buy order to purchase 1000 shares at $149. If the stock gets up to $149 my order for 1000 shares will be filled and my Naked Call will become Covered.
Sell to Open 10 RH 6/29/18 $150.00 C @ $2.00 (+$2000)
This is a Naked Call on a volatile stock but I placed the buy order so I’ll give this a Risk Factor 3.
Steve
The Options Coach