A naked call is the same as a short call. You sell a call option without owning the underlying stock, collecting premium but accepting unlimited upside risk.
If you sell a call and the stock soars, you're forced to deliver shares you don't own at the strike price. You have to buy the stock at market price (which could be much higher) and sell at your strike price, locking in massive losses.
Sell a $200 call for $5 on a $200 stock. Stock skyrockets to $400.
Naked calls can be profitable in strong downtrends where the stock never goes above the strike. But if you're wrong, losses are infinite.
Experienced traders with large accounts and discipline might use naked calls in specific scenarios. Retail traders should avoid completely.
Use covered calls instead. Sell calls on stock you own. Risk is capped, and you still collect premium.
Related: Short Call, Covered Call, Naked Put
