Naked Option Writing: Risks, Rules, and Real-World Discipline

By Lawrence G. McMillan

Naked option writing is one of the most powerful strategies available to experienced options traders — and also one of the most misunderstood. While time decay can work strongly in the seller’s favor, the risks are real, margin requirements can expand quickly, and poor discipline can turn a single trade into a serious problem.

I’ve just posted a Substack article that introduces a full Naked Option Writing Webinar, where I walk through the strategy in detail. The presentation covers when naked option writing makes sense, how margin really works for stock, index, and futures options, and why volatility, probability, and position management matter far more than simply collecting premium.

The webinar also focuses heavily on risk control — including when not to be naked, how to structure trades with enough room to survive adverse moves, and why traders must have a plan for rolling, adjusting, or exiting positions before trouble develops.

You can read the full article and watch the complete one-hour webinar on Substack here:

→ Read the Naked Option Writing article and watch the full webinar

The webinar is also available as part of our Saturdays with McMillan: 14 Seminar Home Study Course.