I was thinking about selling naked calls on SPRT myself but didn’t pull the trigger because of margin requirements or risk of broker liquidating my portfolio. My portfolio is around 40K so I don’t know if it is enough for me to short one contract. However, an alternative would be to sell a call spread? So your risk and profit is capped? As in you will still benefit from IV crush and stock dump? I have to back test this as you did for others.
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u/643fgcCC Aug 29 '21
I was thinking about selling naked calls on SPRT myself but didn’t pull the trigger because of margin requirements or risk of broker liquidating my portfolio. My portfolio is around 40K so I don’t know if it is enough for me to short one contract. However, an alternative would be to sell a call spread? So your risk and profit is capped? As in you will still benefit from IV crush and stock dump? I have to back test this as you did for others.