Should you write options?

Writing options is completely different story from buying options.

The writer of calls option only pockets a small fee and is locked in for the time period of the call.

What if the stock doubles? The writer gets the stock called away, and for a small fee loses all chance for a worthwhile profit.

Before you sell any cover option, take a risk calculator out and figure the risk and reward ratio of your transaction. Is it worth it?

Trading a stock you need a factor of at least 2.5  multiple on your reward and risk ratio.

Is it the same you have to apply when you write stock options?

Writing naked calls is not recommended.

You are taking unlimited risk for writing a call on a stock that you do not own so you are unprotected if the stock moves against you.