Risky Strategy but working - Selling Naked Calls this ER

So, I will preface this by saying, I ran this by Conqueror before making this post as this is super risky strategy and your losses can be unlimited, but i have been using it successfully this ER

My rational is that that the IV is generally very high this quarter like 200% in many cases so buying calls or PUT are literally like lottos. For example, last year when Docu went down 40% PUT went as high as 200-500x, while this year TEAMS and TWILLO fell 35% last week and puts went max 10x. This just shows how much more expensive IV is.

So what has been my strategy. Generally, despite the high IV hardly any company is getting a positive increase in price post ER. Max, you see is 10%, but almost universally all high IV plays are going down.

So far, I have sold calls on Lyft, TEAMS, Twillo, NET, ABNB.

I play it super conservative. In most of these cases I was buying 15-20% OTM calls and making $500-$1k a day by selling 10 or 15 calls. I could easily go 10% OTM, and double my earnings, but risk mitigation is my number one criterion in this play. Slow and steady and don’t get greedy.

For today i am looking at Affrm and UPST. Will post my calculations later. The other thing i do is also buy 15 mins before market close so to work with the latest number possible.


Am going to be selling some AFRM 19.5c and 20c. which means that unless the stock moves 23-25% positive i should be fine.

these are naked and i know the risk, so others if you are doing it, please be careful

Seems like the AFRM calls I sold are going to be all right. I am playing it super safe 20% OTM, but while it reduces profits, the key to this strategy is small gains, steady gains, and minimize risks.

Discipline = Money
Greedy = troubles

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