Selling calls on unexercised options would amount to naked calls.
Sure they'd be naked as far as his broker is concerned but I would expect he has the margin to cover it ;-). I had a discussion with Corporate Legal once when they said short positions were prohibited because it represented a bet against the success of the company. I pointed out that selling short Puts was not a bet against the success of the company and the same goes for OTM Calls. They agreed. As long as he establishes a regular pattern of selling OTM Calls, month after month, it should be ok but I don't know for absolute certain.
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