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Strategies & Market Trends : Options

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To: SecularBull who wrote (2541)2/9/2000 11:24:00 AM
From: Greg Jung  Read Replies (2) of 8096
 
The usual debate occurs between writing covered calls
and selling naked puts, so I wanted to inject writing
calls to emphasize that is not what the discussion is.
The example is confusing because, of course, buying calls
is a wholly different strategy than selling naked puts,
which points to the absurdity of the comparison to begin
with. I could have bought 12.5 calls or 15 calls or 17.5
calls (actually I think it was 17.5) with vastly different
outlays - between $2,000 and $250 and resulting in
profit from $4000 to $2000, respectively, given the move
of the stock at that time.
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