What's better to sell naked a call or a put?

Discussion in 'Options' started by lasner, Mar 19, 2008.

  1. lasner


    What do you guys think are better to sell naked a call or a put.

    I've heard puts are better. Trust me I know it's risky I plan on selling very small amounts to help add a little bit of income.
  2. Why take the risk? Why not use a spread instead?

    Bullish - Long Call Spread
    Bearish - Long Put Spread
    Neutral - Calendar Spread (calls or puts)
  3. Don't mean to sound facetious but.....it depends which way the underlying goes :)
  4. u21c3f6


    The thought of why puts are "better" is that the underlying can not go to less than zero, however, for calls, the upside is unlimited.

    However, given your question, what makes you believe that this is a way to make "income"?

  5. 1) It's slighty safer to do that with index options instead of stock options.
    2) Since the market tends to rally slower than it falls, short-selling calls is slightly safer than short-selling puts.