SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: taxman who wrote (134726)6/27/1999 8:42:00 PM
From: Ian@SI  Read Replies (1) of 176387
 
Let's try one more time...

Naked Put vs Covered call for 1000 shares of Dell at closest strike.

i.e. Aug 37.5

Covered Call
Buy 1000 Shares of Dell at 36 15/16ths: -36937.60 - commission.
Sell 10 Dell Aug 37.5 calls at: 2 7/8: 2875.00 - commission

Net cost: $34,062.60 + 2 commissions.

Naked Put

Sell 10 Dell Aug 37.5 Puts at 3 1/8: $3,125.00 - commission

++++++++++++

Now if you still think that Naked Puts and Covered calls are identical, just send me 34,000 and I'll give you the premium and the obligation for 10 Naked Puts.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext