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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: Ira Player who wrote (13747)7/3/2001 11:44:04 AM
From: Dan Duchardt  Read Replies (1) | Respond to of 14162
 
Ira,

Equivalence shows this position has the same risk characteristics of a naked call.

Perhaps you meant to say a covered call. Naked calls have unbounded risk, while for naked puts the risk is the strike price less the premium received, which is comparable to the covered call risk of stock price less premium.

Dan