Moby Waller

The Cheesecake Factory: Have Your Cake and Eat It Too

First ... selling naked put options requires very high margin requirements, so this trade will tie up a lot of your available trading capital in most people's accounts for a long time (7 months) and option approval level.

Second... if CAKE drops to say 10 for example, for whatever reason, you will lose $7k on the stock and $5k on the puts, roughly a 100% loss -- so its not quite as risk-free as you indicate.

But I did find the article and strategy interesting. I've developed a new credit and debit spread strategy service with limited risks on all trades. Check my website for further info.