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To: skinowski who wrote (158503)1/1/2008 8:35:50 PM
From: Win-Lose-Draw  Respond to of 209892
 
A naked put has the same risk profile as a covered call, but the latter also captures some of the upwards move in the underlying...

Only to the extent that writing a put captures some of the upwards by having the option. If there were to be a difference, somebody's computer would notice because it means there's a risk-free arb to be had.

Adding the OOM long put as you suggest certainly helps with risk, as it turns the whole thing into a synthetic bullish put spread.


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