Selling naked calls on individual tech stocks in this market is one of the more dangerous trades you can put on. Micron went from $100 to nearly $900 in 12 months. Oracle doubled in about four months. Dell jumped nearly 20% in a session. These moves happen on random days with no warning and they can run far beyond what implied volatility ever suggested was possible.
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CHAPTERS:
00:00 Why selling calls on tech stocks is dangerous
01:30 Micron, Oracle, Dell: real examples of the risk
03:00 Index calls vs individual stock calls
04:30 Diversification and gamma squeeze protection
05:30 The gotcha: indexes do trend higher over time
06:30 Conservative stocks as the individual stock alternative
07:30 Practical guidelines for standalone short calls
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