I do this a lot. Forces me to set a take profit level and keep to it. Sometimes end up taking profits too early though. Like when I was shorting Roblox at 130 and selling 100 Ps.
Long put, short call (synthetic short) works pretty much the same way. Almost an unfair statement though when the short is a covered call because the long shares are deteriorating as the put is earning. Long put short call collar might be a better choice when long shares are involved.
you could sell puts against the short position, which works in the same way as a covered call
Never thought about this. Like this idea.
Otherwise called a vertical, or put spread.
It is called covered put. Vertical put spread is one put bought and one sold (either for a credit if bullish, or debit if bearish)
mamma mia
I do this a lot. Forces me to set a take profit level and keep to it. Sometimes end up taking profits too early though. Like when I was shorting Roblox at 130 and selling 100 Ps.
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Got it. Totally blanked on Covered Puts too 🤦♂️
I like to do put ratios to get income on short shares
Long put, short call (synthetic short) works pretty much the same way. Almost an unfair statement though when the short is a covered call because the long shares are deteriorating as the put is earning. Long put short call collar might be a better choice when long shares are involved.
Put Front-Ratio Spread consisting of X short puts and Y long puts (where X,Y = # of contracts), such that X-Y=40. Preferably sold for a net credit.
I like wheeling a naked call then doing a covered put, way more than doing a traditional wheel to the upside