Suppose I sell a naked call option and assume the spot price reaches the strike at expiry.
Apart from transaction costs and bid–ask spread, what could go wrong if I do the following:
Between the strike and break-even , I keep on buying the same quantity of the spot, and sell it if the price falls back near the strike.
What are the other risks or practical issues with this strategy?
@pavinjoseph @BB789
Circuits and gaps are probably issues.
Do you mean to cover your naked call by purchasing the underlying when the spot price breaches the strike price? 
A naked call is one of the most dangerous option trades (much more than a naked put). 
Better if you did a covered call or even a strangle (partial hedge). 
Interesting take. Why? I always assumed naked puts are dangerous than calls. Anything can crash. But it takes time to build(especially with index options).
It’s due to the upward drift in equity indices. 
You can roll a naked put out in time, receive a credit and wait out any corrections. 