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.
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.