Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: hivemind who wrote (1194)	6/24/2001 10:26:50 AM
From: Stock Farmer	Read Replies (1) \| Respond to of 5205

Yes, I was pretty sure psychology was the only major difference. Thus once one's mind is limbered up, the determinant of when to use an equity covered call versus a cash covered put is whether you already hold the shares. If you hold the shares, then write the call. If you do not, then instead of using the cash to buy the shares, use it to secure the put. >>Having said that, I'm wondering how you'd need to go beyond the basic math required to confirm the equivalence.<< I don't need it for myself. It was crystal clear, I thought. Just wanted it for the thread. To offer up a slam-dunk proof of equivalence and put an end to a silly argument once and for all. Besides, this is called "Covered Calls for Dummies", not "Covered calls for Geniuses". <vbg> John