Covered Calls vs Selling Put Options: Which is Better?
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0:00 Intro
0:24 Example 1 Covered Calls vs Short Put Option Bullish stock
2:00 Example 2 Covered Calls vs Short Put Option Bearish stock
3:27 Other factors to consider in answering the question of which is better
4:09 Claim #1 Stock appreciation (Covered Calls vs Short Put Option)
5:47 Claim #2 Covered calls on dividend paying stocks (Covered Calls vs Short Put Option)
10:15 Claim #3 Buying stock at a discount (Covered Calls vs Short Put Option)
12:02 Which is better? Covered Calls vs Short Put Option?

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In this video I will answer the question: Which is better? Selling put options or selling covered calls? As you can see here, 53% of you say that selling covered call options is better, 36% say that selling put options is better and 7% said they are the exact same thing. What if I told you that, you’re all right? Well, kind of….. Let me show you what I mean.

Let's also run the numbers on some of the popular claims and myths about covered calls and selling put options. For example, what about stock appreciation? I know some of you like to sell covered call options that are out of the money, but you also want to benefit from stock appreciation. Aren’t cover called options better for that? Let’s look at another example.

Let’s tackle another theory. As you know if you’ve been watching my channel for a while, I love trading in dividend paying stocks. What about if we did a covered call on a stock that was going ex dividend? And remember, you can’t be paid a dividend unless you own the stock! So would we come out ahead by doing a covered call instead of selling a put option on a stock that’s about to go ex dividend? This one might surprise you....

Let’s talk through another scenario I hear on YouTube and in talking to traders where they say that either covered calls or selling puts is better than the other one. For example, one of the common conversations I hear is that you sell put options to buy stock at a discount. Hummm……. Let’s talk through that.

So let’s answer the question once and for all, which is better? Covered calls or naked puts?

Happy investing!
Randy Perez

#optionstrading #optionstrategy #OptionsTradingTutorial

Disclaimer: I am not a financial planner and am not offering investment advice. This is an opinion channel only and should not be taken as any form of financial advice. The ideas and strategies that I discuss should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. There are financial risks involved in taking on any monetary transaction that I discuss in my videos. I may receive a small commission from the purchase of any item from using the links listed above.

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