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To: Knighty Tin who wrote (224781)3/2/2003 12:37:35 PM
From: ild  Read Replies (2) of 436258
 
<<<Covered call writing is exactly the same thing as shorting a put >>>
KT, I do a lot of both -- shorting puts and writing calls (thanx to some Mike Burke who taught me what options are and how to smartly use them). To me they are different.
1. First if an underlying has a meaningful dividend you get to collect it with covered call (i.e. last week I collected $0.80 dividend on AU on which I wrote calls last year).
2. You sell short puts and covered calls at very different points in time.

I'd rephrase what you said this way "Covered call writing has exactly the same risk as shorting a put".
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