Naked Options Are Back In Style Thanks To Smart New Ways Of Trading Naked Options In Combination With Weekly Options with GS8 Options Weekly Paychecks Naked Options System…

Did You Know That Selling Naked Options Can Be A Tremendous Network Building Strategy?

Yes, it’s true when you do it right. Unfortunately, the history books have a lot of people who have not traded naked options well. But just because someone does something dumb, we don’t have to do the same thing. Plus, we can learn from them, learn what caused their stupidity, and understand it so we don’t have to fall victim to it ourselves.

Here’s How to Do Naked Options Right:

  • Don’t use leverage! Why? Why would you even think of using margin with a selling option strategy? It doesn’t even make sense. If you’re looking to capture the big move, then by options!


  • Therefore, we are using cash-secured naked options.
  • So now that we’ve removed the insanity implosion issue, we can look to maximize options premiums, putting decay rates in our favor.
  • Most of the formal” literature out there you see on options talks as if you’re just going to gass by options out of the blue or because you have a special feeling… I don’t know why those guys even print that. He gives the false impression that you can just trade by feeling. Maybe get lucky and make some money. Who trades like that? (Well, actually, most people do, and that’s why most people lose.) It’s irresponsible to trade options without exact entry points, stop-loss points, and profit-taking exit mechanisms. And with naked options, we were not fooling around. We need an exact plan to make this happen.
  • We are not going to lazily sell out of the money options because we are guessing or hoping that the stock will never reach that far out of the money. A lot of traders do this. That is a weak strategy.
  • We’re going to show you how to use the price point trigger to stop losses so you can prevent your stock from going against you in the money.
  • We are going to trade price triggers to get us, and with a good risk-to-reward ratio, allowing us to potentially make a lot more money.

We Are Going to Take the Same System We Used for GS7 and Modify It for Cash-secured Naked Options.

On that note, do not use margin on naked options ever, for it leads to bad psychology. Conversely, using 100 percent cash-secured naked options can lead to good net worth-building psychology.

Here, we focus on AAPL. We look to sell weekly options. We are looking to trade momentum triggers; therefore, we can trade slightly in the money-naked options. When we sell naked options, we need to have a premium on them to help prevent them from being exercised against us. Depending on how much time is left on the option, we will look at how deep we can go on. AAPL, for example, which will usually be between one and three, strikes ITM.

When we capture a move, we can close the position or just let it expire. We look to hold one position at a time on the same stock. And we make sure the funds are there, hence cash secured, in case we get called out. And of course, we have specific stoplosses to close out our trade if the entry hits our specific stoploss point.

Here is GS8. It’s a Fairly Active Weekly Option-selling System.

We look to sell as quickly as possible, of course, for faster decay rates. But we only sell options that have plenty of premium in order to try to prevent getting called out.

Points gained or lost in the options are listed below. Options points are approximations, and premiums will vary over time as a stock price becomes greater or smaller and as the stock becomes more or less volatile. When the premium is less, we can sell less money. When the premium is higher, we can sell for a higher price. Also, AAPL in the performance sample below has 1 point weekly option strike, so 2 or 3 strikes ITM is only 2 to 3 points ITM just so you understand.

This is a 5 month sample of performance.

  GS8  AAPL    
6/23/2014 3.8      
  -0.4 1.21 -0.5  
  0.4 2.1    
  -0.7 3.8    
  0.8 3.4    
  -0.5 -0.6 -0.7 1.2
  3.7 2.8    
  -0.5 0.2    
  -0.5 1.7    
  -0.8 1.2    
  -0.73 3.4    
1-Dec 48.98 Rough Approximate Options Points
  5 Months Premiums will vary based on current volatility of stock