"buying calls has lower potential risk than selling puts"
To some degree yes, however when you sell puts you have 3 ways to make money, if the stock goes up, stays the same, or even goes down some, (time decay works for you and you can roll out to another month if need to)
When you buy a call, time works against you, you have to be right on your entry, and the direction. Lots of folks with calls out for April (earnings run) that will run out of time, even if the stock does rebound.
Of course if you have longer term calls, more time to recover from a loss. This is just the way I look at both stragtegies, everyone must do what works best for them.
DM |
