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rajivvyas
 

Registered: Jul 2008
Posts: 18

 

10-17-12 04:07 AM

I was looking at Jan 2014 call and puts with a strike price of $13. If I sold a $13 call, I get around 57 cents premium and if I sold a put at $13, I get more than 80 cents. When does it make sense to sell a call vs. put?

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cdcaveman
 

Registered: Aug 2011
Posts: 3518

 

10-17-12 04:10 AM


Quote from rajivvyas:

I was looking at Jan 2014 call and puts with a strike price of $13. If I sold a $13 call, I get around 57 cents premium and if I sold a put at $13, I get more than 80 cents. When does it make sense to sell a call vs. put?



why so far out? whats your perspective on the stock.. sellling a put is bullish selling a call is bearish.. ?

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rajivvyas
 

Registered: Jul 2008
Posts: 18

 

10-18-12 03:39 AM

Thanks. Mostly because I am experimenting with the system. But you helped me answer the question. I was trying to understand the payoff in this situation between covered call writing and selling a put. Thanks.

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