Implied Volatility
Selling writing is a preferred strategy for advanced options traders as in the worst-case scenario, shares are assigned to the sales clerk (they must buy the stock), while the best scenario is for the writer to retain the full amount of the option premium.The biggest implied volatility risk of writing writing is that the writer might end up paying large sums for shares if they are stored later.The risk / rewards profile for writing the bid is more unfavorable than the call buys or sell file as the maximum reward equals the premium received, but the maximum loss is much higher.However, as discussed previously, the potential for profit is higher. Call writing comes in two forms, covered and bare. Covering call writing is another preferred strategy for medium to advanced traders, and is commonly used to generate additional income from a portfolio.It involves writing calls to stocks held inside the wallet.Typing unreported or naked calls is the exclusive boycott of complex and risk-tol
