Comments on: The Longer View, Part 4 http://alephblog.com/2007/09/15/the-longer-view-part-4/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 18:05:33 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: BriGhttp://alephblog.com/2007/09/15/the-longer-view-part-4/comment-page-1/#comment-5597 BriG Mon, 17 Sep 2007 18:17:45 +0000 http://alephblog.com/2007/09/15/the-longer-view-part-4/#comment-5597 With naked put selling, I believe he talking about excess return instead of total return. For example right now you will receive more for selling a naked put on the SPY than you will for selling a covered call at the same strike. That's backward since with a covered call your tying up capital and forgoing at least the risk free rate of return. Interesting, at the moment both the QQQQ and DIA have covered calls being more profitable, as it should be. The SPY must be the put index of choice. With naked put selling, I believe he talking about excess return instead of total return.

For example right now you will receive more for selling a naked put on the SPY than you will for selling a covered call at the same strike. That’s backward since with a covered call your tying up capital and forgoing at least the risk free rate of return.

Interesting, at the moment both the QQQQ and DIA have covered calls being more profitable, as it should be. The SPY must be the put index of choice.

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