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Top 10 Options Trading Strategies


There are about 72 options trading strategies.  The following infographic describes the top 10 options trading strategies: Covered Call, Protective Put, Long Call, Long Call Spread, Long Put, Long Put Spread, Long Straddle, Long Strangle, Collar and Iron Condor.

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I would bet money the sale of a naked put is more popular than a covered call given they are identical and the former is more efficient.  

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Possible, but the funny thing is that most brokers allow covered calls in retirement accounts, but don't allow naked puts..

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1 hour ago, MRB said:

I would bet money the sale of a naked put is more popular than a covered call given they are identical and the former is more efficient.  

I've got a car that I guarantee will out run any horse, anywhere, and most people would prefer the car.  But then they aren't the same thing and neither is a naked put and a covered call, emphasis on "naked" and "covered" and all that the difference implies.

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Both positions are identical.  Limited upside profit and unlimited downside risk.  Think about it.  I didn't make this up.  This is straight from Options as a Strategic Investment.  The profit graph is identical.  

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You are confusing risk graph with the position.   You have forgotten (I still do frequently) that we now have a 5% (roughly) interest rate.   I was taught by McMillan too, cost of carry matters now.

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