Covered puts anyone?

[prc117f]

Your explanations are totally confused. You need to brush up on the 6 basic positions of the Synthetic Triangle, all of which are variations of S + P = C

how is it confused? A covered put(correction cash secured puts) covered puts are totally different Sorry (covered put = short stock short put)
Lets say SPY is trading at 180

so you have 180K cash to cover assignment, you sell 1 short put at the strike price of 180 and collect 4 dollars of premium (400 dollars)

you have a synthetic covered call position. as if you were long 100 shares of SPY and sold a covered call and collected a premium. if SPY stays over 180 (lets say friday 181) you have no stock, but cash on your account friday + 4 bucks premium.

That would be the same as if you sold covered calls on 180K worth of stock strike price 180. that monday you will cash + premium.


S(Stock) + (long put) = covered call? That makes absolute no sense.

 

[prc117f]

Oh shit you guys are right, for some reason I was thinking cash secured puts not short stock short puts. (I never do those) I had the terminology wrong.

Since I only live strangles/straddles/short calls puts/iron condors everything else is out of my lane.

I hear covered puts I am thinking covered calls.

 

[Pekelo]

I was thinking cash secured puts

I had the feeling. I like to play CSP, anything but naked.