Cash Secured Put 6.5% vs Covered Call 44.8% Return on UAVS

[FSU]

I agree with some of the comment
yes I am comparing a otm 10 put vs a otm 15 call
but what i am also pointing out is there is more potential for selling call sometime (or all the times)
but we should use a mixture of both selling otm put and sometimes selling call
it all depend on the outlook of the underlying you are trading, if outlook is bullish then do a covered call maybe better

You're missing the point of what I am saying. Again, you are treating a covered call as something different from a short put of the same strike. You are saying is if you are bullish you should sell a covered call but what you seem to mean is you should sell an out of of the money covered call, (which is essentially the same as selling the same strike put)

In fact you may be better off selling the put vs a covered call of the same strike. If the stock is hard to borrow, you will make more selling the put.

 

[benysl]

I can understand you. buying stock and sell 15 call is the same as sell a 15 put itm
buying stock and selling a 20 call is the same as selling a 20 put itm
I understand that but it may just be me.
I am not used to selling a itm put even thou risk profile is the same and you save also 1 transaction fees and required lesser margin.
But just that when I am selling put i always go for otm or atm, and if i wanted to do itm i will do it using covered call
that is just me
nothing personal

 

[jnbadger]

I agree, but that is why Guru said "cash secured". Why not just sell 10 puts on a 15 dollar stock if you have 15k in your account. Why pay the double commissions on a covered call. It's exactly the same.

 

[jnbadger]

I agree, but that is why Guru said "cash secured". Why not just sell 10 puts on a 15 dollar stock if you have 15k in your account. Why pay the double commissions on a covered call. It's exactly the same.

Sorry. I was trying to quote Ironchef. I need to brush up on my ET typing skills.

 

[ironchef]

I agree, but that is why Guru said "cash secured". Why not just sell 10 puts on a 15 dollar stock if you have 15k in your account. Why pay the double commissions on a covered call. It's exactly the same.

Good question. No good reasons, I am just a retail and do what I feel more comfortable doing. To this day I mostly trade calls, occasionally buy put only for deep protection.

Even when setting up a butterfly I do call butterflies.