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Interesting you use EBAY for your example. You can lose money on either strategy.....what if you wake up tomorrow and EBAY is trading at $2 ?

I sold some EBAY 47.50 puts in Jan of 2005 when the stock as trading over $50 and woke up to find EBAY trading at $30. Yes you can lose selling covered calls OR naked


Of course you can lose money on EITHER strategy -- a covered call and a naked put are equivalent strategies. If one loses, the other is very likely to lose a very similar amount. For example, if you had bought the stock at $50 and sold a call for $47.50, a drop to $30 (or $2) would have lost about the same as the naked put.

The guarantee I mentioned was not for EITHER strategy. It was for a COMBINED strategy if the call and put prices were out of line with each other. In your example, you lack the opposite of a covered call strategy.
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