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I disagree. It is never smart to be short naked calls.

I completely agree that it is not a recommended strategy for investors. Likewise, not recommended for higher volatility stocks and when earnings are due. I am simply trying to speculate the rationale.

Theoretically, the time-decay for OTM calls is faster than for the ITM calls. So, by taking a net short the trader is betting on the time-decay to close his/her 'net' shorts and stay in a neutral position.

If the trader eventually wants to own the stock, he/she may even sell the 30 PUTS at the same time.

A trade happens because each party thinks they are getting the best deal for their money at that time.
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