Why do so many people make the high cost bet?

[william the wie]

Why buy a call when you can sell a put you and are making more or less the same bet but with cash coming in instead of going out and that is better.

 

[Toddsterpatriot]

Less profit potential, higher potential loss, larger margin requirement with naked put.

 

[Cellblock2429]

Why buy a call when you can sell a put you and are making more or less the same bet but with cash coming in instead of going out and that is better.

/——/ Currently, I’m selling Puts on Restoration Hardware (RH) that is on a tear. I usually sell at the 25% risk level of being assigned. I would have made more buying calls but I hate laying out so much money. Yes I know I could do a spread where the sold Put reduces the cost of the bought call, but it’s never worked out for me. RH Common Stock (RH) Option Chain

 

[william the wie]

I just keep my strategies as near idiot proof as possible. look at Bloomberg 0.2% Dow decline, maybe the sky really is falling this time. I don't understand why that matters? the put market offers me a gross yield of 60%.

 

[Toddsterpatriot]

I just keep my strategies as near idiot proof as possible. look at Bloomberg 0.2% Dow decline, maybe the sky really is falling this time. I don't understand why that matters? the put market offers me a gross yield of 60%.

Imaginary options have the best premiums.