Options Trading Strategies: Out Of The Money Naked Call

http://thestockmarketbasics.com/options-trading-strategies-out-of-the-money-naked-call/ The out of the money naked call option trading strategy allows traders to collect a premium on an OTM option contract without actually owning shares. This form of options trading is similar to that of shorting and tends to be done using bearish stocks. The main idea when using out of the money naked calls is to collect a premium on an option contract of a stock that is highly unlikely to have any big movements in the near future and as long as the stock stays in its current range or drops the contract will simply expire worthless. To learn more about trading options be sure to checkout our option trading education center: http://thestockmarketbasics.com/introduction-to-trading-stock-options/

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