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/