Episode #11 - Covering A Put With A Put The A.J. Brown Show
-
- Investing
In a previous episode we discussed the methodology behind covering a call with a call, and in this episode we're going to talk about the reverse of that, covering a put with a put. Covered puts work essentially the same way as covered calls, except that the underlying equity position is a short instead of a long stock position, and the option sold is a put rather than a call. A covered put investor typically has a neutral to slightly bearish sentiment.
In a previous episode we discussed the methodology behind covering a call with a call, and in this episode we're going to talk about the reverse of that, covering a put with a put. Covered puts work essentially the same way as covered calls, except that the underlying equity position is a short instead of a long stock position, and the option sold is a put rather than a call. A covered put investor typically has a neutral to slightly bearish sentiment.
11 min