No. of Recommendations: 1
A covered call ... Selling a put ... How on earth are those two equivalent to each other???

Selling a cash-secured put, not a naked put.

If you don't understand why selling a covered call and selling a cash-secured put are equivalent, best not do either. Funny thing is, selling a (cash-secured) put is arguably superior to selling a covered call -- although only slightly better.

Look at the P&L charts.
Cash-secured put:

Covered call:

Given the identical stock price movement, the outcome of these is the same. (Realizing that cash and stock can be transformed into one another at neglible cost.)
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