# Naked Short Call

> Could you carry a 40% overnight gap up - financially and psychologically?

| Property | Value |
| --- | --- |
| Market phase | Range-bound, no trend, price oscillating between levels, Topping out, or a quiet downward drift |
| Driver | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility |
| Direction | bearish / neutral |
| Max profit | the credit received |
| Max loss | unlimited |
| Risk defined | No |
| Legs | -1 Call @K |
| Approval level | 4 (Uncovered short positions - the highest approval tier and margin requirement) |
| Experience | Advanced |

## Formulas

```text
Break-even: K + C
Max profit: C
Max loss: unlimited
```

## Legs

1. -1 Call @K

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/short-call-naked)