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Covered Calls vs Cash-Secured Puts by pkkothari is a document available to read on EtoBox.
1) Covered calls and cash-secured puts are equivalent strategies with the same risk/reward profile. While covered calls are often viewed as conservative and cash-secured puts as risky, the payoff is identical for both strategies assuming the same inputs. 2) In periods of rising markets, covered calls will outperform cash-secured puts due to benefiting from upside price movement. In declining markets, cash-secured puts perform better. 3) Thinking of covered calls and cash-secured puts as equivalent positio
- Author
- pkkothari
- Language
- EN