CCs and NPs - who to believe?

Change the broker.

 

They are not identical from the broker's viewpoint. Since you have the stock, CC is riskless to the broker. NP is not unless you have enough balance to buy the stock. Some firms will allow you to do NP in IRA only if you have enough balance to buy the stocks.

Cash + NP = stocks + CC.

 

BTW, I also got Lehman & McMillan's "New Insights on Covered Call Writing". Why didn't they write "New Insights on Naked Put Writing"? They only spend 2 pages on why NPs are equivalent.

 

There is no new strategy for NP or CC. They are as simple as MTE has explained.

I don't think it is necessary to find any books just to learn CC or NP. To really make $ in option trading, you need to learn more.

 

I don't think Lehman and McMillan have any new strategies. I think their "New Insight" is that you can keep writing CCs month after month instead of just a one shot deal.

I am hoping to use NPs and CCs (if the puts get assigned) to generate steady somewhat predictable income.

 

Don't follow any book or guru's advice until you understand it.

Obviously you're a beginner trader and you have your hopes way up. There's no such thing as "generate steady somewhat predictable income" without having the right opinion on the market (price, implied volatility).

Nobody can give you the kind of answer you're looking for. Go back to studying, but this time don't expect to read the best answer, but try to learn to think for yourself, and eventually you'll come up yourself with the best answer for you.

 

I don't think I can really add to cnms2's comments however I will say you can certainly generate steady but NOT predictable income in using NP's and CC's. I do it all the time. There was an excellent article a couple of months ago of how to structure an NP and CC portfolio which I believe cnms2 reproduced. Start by selling the NP on a stock you want to own...month to month... if you are assigned then write the straddle....if you are assigned then write 2 calls....if you are assigned then start back at the NP. I actually follow this on a couple of stocks I personally like and follow.