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Option Traders Unite Forum > selling OTM puts

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Noobie_Trader_03

Member since: Jul 08
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Posted September 23, 2009 (07:31AM)
I heard this strategy works very well but don't know enough about it. Can anyone help me explain this?

Thank you.
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OldFart

Member since: Jun 08
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Posted September 25, 2009 (12:15AM)
Synthetically the short put position = covered call (long stock, short call) at the same strike. Some like it better bcz it involves only one transaction (fee) vs two for the covered calls