To write calls, you would have to buy the stock first and then sell the covered call.
The risk reward ratio of selling a 4 dollar naked put on FMG is the same as Buying FMG at $4.80c and then selling the $4.00 Call option for a 90c Credit.
Effectively you are hedged to $3.90 with a 10 cent yield.
Its basically a Hedged Yield.
Its like investing for a return and being hedged to the level you are comfortable with.
In my case Im comfortable Buying FMG for $3.90c before the end of June.
The yields on FMG is solid enough for me to be comfortable with that risk exposure.
