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.
Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?


To: jjs_ynot who wrote (915)9/19/1999 5:03:00 PM
From: OX  Respond to of 2317
 
I think what Ron is saying is that they are equivalent positions... CC's and short puts (naked).

I don't care what Cramer says ;-), I like 'em (in certain situations and on certain underlying).



To: jjs_ynot who wrote (915)9/19/1999 7:25:00 PM
From: ron delany  Read Replies (1) | Respond to of 2317
 
OK OK, it could be thought of as a synthetic way of setting up an uncovered (naked) short put. Not the most elegant terminology i guess.

Noone thinks of it that way of course but the profit loss is about the same.

What i'm saying is if you don't sell uncovered puts because they're too risky, then you shouldn't be doing covered calls. At least that was my thinking. And what turned me against covered calls since I'm too cautious for uncovered puts.