The fixed strike price is a crucial aspect of selling naked calls, and it's what makes this strategy so risky. Here's a summary of how the fixed strike price works:

- The investor sells a call option with a fixed strike price (e.g., $50).

- The buyer of the call option has the right to buy the underlying asset at the strike price (e.g., $50).

- If the market price rises above the strike price (e.g., to $100), the buyer will exercise the option and buy the asset at the lower strike price ($50).

- The investor is obligated to sell the asset at the strike price ($50), even though its market value is now higher ($100).

- The difference between the market value and the strike price represents the potential loss for the investor ($100 - $50 = $50).

As the market price rises, the fixed strike price becomes increasingly lower than the market value, resulting in a larger potential loss for the investor. This is why selling naked calls is considered a high-risk strategy, as the potential losses are unlimited if the market price continues to rise.