Are naked puts really this safe????

xandman said:
Yes. That's why that section of the skew has the lowest volatility.

Being priced in and very capital intensive, you would do no better than holding the index on a cash basis with less hassle.
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I think I finally realize what you are telling me. Which I guess is to buy the index and trade covered calls against it.

Thank you,

John
 
It would be interesting to know if anyone has backtested selling slightly ITM puts on the SPY compared with using covered calls.
 
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