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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: Tom K. who wrote (869)	1/22/2000 12:14:00 PM
From: taxman	Read Replies (1) \| Respond to of 1235

i agree that a covered call is less risky than owning the stock outright. but only to the extend that if the stock goes to zero you still have the premium you received for selling the call. however to get that downside protection you have to give away almost all of the upside. why is put selling better than a covered call? as you know, i am of the opinion that they are essentially the same thing. it has been my experience that one cannot get rich using either of these methods (covered call or short puts) unless you are rich to begin with. it has also been my experience that one can get rich on a relatively small stake by being long puts and calls. i don't play spreads so i can't comment intelligently on them. be glad to hear contrary views. regards