Naked-call opt-in (uncovered calls)

By default WheelTrading only proposes covered calls (CCs). Uncovered calls - where you do not hold the underlying stock - are only offered after you explicitly opt in for the account. This safety layer exists for two reasons:

1. Risk: an uncovered call has theoretically unlimited loss potential

if the stock rallies hard.

1. Margin: IBKR margins uncovered calls much heavier than covered

calls, which eats into your available buying power.

Default behaviour

• Without the opt-in, the ranker filters out call candidates where

has_stock == False.

• The send dialog shows a red lock and explains that the proposal would

be uncovered.

Enabling the opt-in

You can enable the opt-in per IBKR account in the filter settings (naked_calls_allowed). Once active:

• Double confirmation: the send dialog requires both the warning

review checkbox and the extra naked-call confirmation before sending.

• UI markers: naked-call proposals are highlighted in red in the

proposal list and in the coverage badges.

• Assignment preview: the send dialog additionally shows the

potential short-stock position with a market-risk note.

Recommendation

• Only enable this if you run a portfolio-margin account and actively

monitor your risk limits.

• Even with the opt-in, please review every proposal manually for

market context (earnings, ex-dividend, VIX regime).

• The classic wheel workflow does not require this opt-in.

Legal: WheelTrading provides proposals, not investment recommendations under EU MiFID / German § 2 WpHG. Uncovered calls are a highly speculative instrument.