Back to covered calls/naked puts...
I applaud fellow posters who have pointed out that the payoff is the same. I find it quite amusing for people to speak of the "psychology" of trading these positions. Same old "no i wont do naked puts, but i'd do covered calls" i've heard it so many times before and no matter how many times it is explained people just dont get the point.
Ask any decent options trader about synthetic positions and see if they trade it differently psychologically.
I disagree... but hey sounds like you know what you are talking about.
Psychology of the trade is a personal perspective... You can't say that people are wrong wrong wrong... To say that is naive. Next you are going to say that Technical analysis is crap, fundamentals don't work, the moon doesn't affect stock prices, and buying options is for losers because 80% of options expire worthless (which is crap by the way)... It's what works for that person.
We've all heard of sports professionals that wear the same 'j#$K-strap' or socks for every final because they think it brings luck. hmmm.
Someones perception is their reality.... If someone is more comfortable trading one instrument versus another, even though they may be the same/similar, it's their psychology, it doesn't matter what someone else thinks...
P.S. I've traded both strategies extensively... And i found the psychology very different. but hey that's my reality.
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