A covered call position is basically equivalent to a short put. Is the new retail trend of buying covered call ETFs on SPY and QQQ not the same as selling monthly puts? Shouldn’t inflow into these funds make the other side of the trade (buying puts) more favorable?
Retail buying covered call ETFs (JEPI) = Retail selling puts?
byu/doucasandkapetanakis inoptions
Posted by doucasandkapetanakis
1 Comment
no these funds sell calls, the other side of the trade is buying calls, not buying puts, unless you meant writing ITM puts at the same strike which is essentially equivalent to writing OTM calls