Some say FSLR will backtrack to $26. Others think it'll continue higher.
I don't really care if it doesn't move at all.
Look at selling the March $33 calls. You can get $3. So if the stock goes to $26, you cover 60% of your loss. If the stock goes up, you are covered up until $36/share. Plus, the $3 is a 10% return for 3 months (or 40% annualized) with the ability for a total possible gain of 16% (or 64% annualized).
Writing calls is a pretty large percentage of my portfolio.
As to your suggestion about writing naked options:
That would imply I was bearish on the stock, which I am not. And writing naked options means taking on risk I am simply not prepared to take. Being long the underlying stock protects me if the stock should suddenly increase substantially in value.
There are only two things I do naked....shower and make sweet love. With options, I prefer to be covered.
That's why my post was titled "better" way to play.
If the stock goes to $14, then you are down $17 minus the $3 premium you took in, which is $3 better than you'd be if you didn't write the calls.
If anyone wants to hedge as well, they could purchase 20 March $21 puts for a net trade of $1.20....then if the stock goes to $12, they'd essentially break even (down $19 on the stock and up $9 on the option x2, plus the $1.20 for the options trade).
I don't consider buying stock to be speculation. I buy options for speculation. I buy stock as an investment. I don't believe we are headed below $20. If we go to $25, then I'll figure out my next option move then.