Naked Call
Sell Call without owning stock
Positions in Chart: Sell 1 lot of 26200 CE (uncovered). Spot price: 25800
Setup
Sell OTM Call without position
When to Use
- High conviction bearish outlook
Market Outlook
Volatility Expectation↘Expected to Fall Sharply
Price Direction↘→Expected to Fall or Stay Flat
Risk & Reward
Breakeven PointStrike Price + Premium Received
Max Contract LossUnlimited
Max Position LossUnlimited
Strategy Details
Complexity LevelHigh Risk
DirectionSteady Bearish
VolatilityFall
Number of Legs1 Leg
Strategy TypeCredit
Hedging CapabilityNo Hedging or Naked
Description
A naked call involves selling a call option without owning the underlying stock
Example
If NIFTY is at ₹25,800, you sell a ₹26,200 Call for ₹30, receiving premium but facing unlimited risk if NIFTY rises sharply.
This information is for educational purposes only and should not be considered as financial advice. Always consult with a qualified financial advisor before making investment decisions. Data is constructed and is not actual. Calculations may have errors.
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