Question: Is selling a naked put more risky than executing a covered call? Answer: No. Despite what you may have heard, these positions are identical

摘要

Many of our students, after following our step-by-step criteria before considering such a position, want to sell naked puts on stocks experiencing extremely high volatility. We are staunch proponents of risk averse trading, but there are times when selling naked puts make sense.rnHowever, often brokers try to steer them away from the sale of a naked put because of risk considerations, and instead, try to get them to buy a covered call in its place. Huh? This is akin to saying, "Don't buy six call contracts, buy a half dozen instead." A covered call and the sale of a naked short put are one and the same.