*SCALPSWINGSTRADDLE*

[leemalone2k3]

Who in their right mind would'nt. Look at it like this. An option is a depreciating asset. Probability of winning trades are increased if you sell the asset first, then buy it back after it melts. There are tons of way to sell premium with defined risk, so there is no need to be naked short.

Example.

I bot 20 Jan 2012 YHOO 17.50 calls last fall around 2.00 and sell weekly and front month calls against them on a regular basis. I paid off the calls in about 6 weeks and have sold premium almost every week against them. Lately almost every time it pops, the calls inflate and there are opportunities to short more against the LEAPS. You can set stops on the short side, just like you can on the long side to minimize any losses if your trade is wrong.