Managing Funds for a Living

You're a speculator by your own admission; simply substitute put for call: "selling the put options".

 

The only advantage to the buy-write is under some discrete gamma-trading scenario in which the trader is adjusting deltas. Of course, nobody would buy 50-deltas in the atm simply to get flat later.

A faint "poof" is heard in the distance as Gil's head explodes

 

OK AKS is 35 Jun 35 call is 1 Jun 35 put is 1.

Sell it. I know what I'm gonna do with the CC trade to manage risk.

But the put trade?

Let say I use my SL method. Stock falls Monday morn to 34. Is this my target to buy back naked put. What will naked put price be? What percent loss is that to my portfolio?

Let this slow man think about it.

 

LOL.... Poof

What I meant by buy write is the people who do covered calls simply as an addition to an already full stock portfolio compared to those who go out and buy the stock for the sole purpose of establishing the buy write. I would not expect the stock holder to liquidate everything to switch to short puts.

you still sober?

 

You'd have lost the exact same amount on the naked 35 put as you would've on the covered 35 call.

 

Atticus' head explodes

 

Are you sure about that, cause that would mean they are equivalent????

 

LOL

About $36 per contract to be exact.

 

I'm at my mini pool and on my third chi chi pina colada. I am about to have a lava flow. See ya.

 

Here a comparison between the two that you suggested.