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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Mathemagician who wrote (225)4/25/2001 11:14:33 AM
From: Dr. Id  Read Replies (1) of 5205
 
Writing uncovered puts has essentially the same risk/reward profile as a CC with lower capital outlay, so you get higher ROI.

dM

dM,

Not sure if this is true, as uncovered puts leave you vulnerable to a stock crashing and having it put to you at the much higher price (happened to me last year with GMST and ELON). How is that the same risk/reward profile? (I'm guessing that it has something to do with the cc position also being vulnerable to crashing, but explain it to me anyway!):-)

dDI
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