They aren’t really comparable. Yes, they both profit if the underlying goes up, but they have significantly different return profiles, and dramatically different cash/margin requirements.
Fletch71011 on
Selling naked puts in most situations. Selling put spreads usually has you selling lower IV to buy higher IV. That’s not going to be a long-term winning strategy. With naked puts, you just have to worry about the vol of that particular option.
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They aren’t really comparable. Yes, they both profit if the underlying goes up, but they have significantly different return profiles, and dramatically different cash/margin requirements.
Selling naked puts in most situations. Selling put spreads usually has you selling lower IV to buy higher IV. That’s not going to be a long-term winning strategy. With naked puts, you just have to worry about the vol of that particular option.