/biz/ - Business & Finance

May sell some Beyond Meat Inc naked calls tomorrow. If I understand right, you want to sell and buy a call to limit your loss, ie: sell @ $20, buy at $25 - this would limit your max loss to $500.

Apr 21 has a: $17 bid @ $0.30 and $20 ask @ $0.12. So exercising this id profit $18 and risk $300 per contract (excluding commission).

1. Is this the correct way to look at it?

2. How often do trades happen between the bid/ask? Ex: The last $20 strike trade was $0.08 instead of the $0.12 ask. In other words is it best to base my trades off the last trade and set that as my bid/ask? Or will my trades sit their all day and not execute?

3. Any other advice for selling naked calls?