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January 15th, 2007 by 
reality
Just some things worth remembering:
Long the underlying+long a put=long a call (insurance put)
Long the underlying+short a call=short a put (a covered call is the same as a naked put)
Short the underlying+long a call=long a put (insurance call)
Short the underlying+short a put=short a call
Posted in Strategy & Scenarios | 
January 16th, 2007 at 6:47 pm
It’s always amazing that people think that covered calls are a conservative strategy and that naked put shorting is highly risky… Perhaps it is because naked put shorters tend to use too much leverage?
January 16th, 2007 at 8:47 pm
Probably it is the leverage, but also the cautionary tales of put sellers blowing up. Like Victor Niederhoffer, for example.