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Author: Zumba Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 11006  
Subject: Re: Possible call option MCP Date: 8/13/2012 2:47 PM
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What I find interesting is that most people I talk to on the options discussion boards that do both strategies choose different strike prices for each strategy, even though they are more or less the same thing at any given strike price

The risk profile and max loss for the two positions are the same - cost of the stock minus commission received, but people use different strike prices for the covered call vs. naked put because generally you want to sell the closest OTM call or put. In almost all cases the closest OTM call is at a different SP than the closest OTM put.

Paul
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