tdeel,
The options market is still in its nascent stage in India. Not too many people understand the intricacies of the market. Very few people would even know that a short put is nothing but a covered call. The profit profile for both strategies is the same. The only difference would be in the margins paid upfront...
Between a short put and a short call, most people would be fearful of a short put, when in theory a short call is more risky as the underlying could go to infinity, while at worst the underlying could only fall till zero.
Anyway, we need people like that in the market. Otherwise, where would we make the money from?
The options market is still in its nascent stage in India. Not too many people understand the intricacies of the market. Very few people would even know that a short put is nothing but a covered call. The profit profile for both strategies is the same. The only difference would be in the margins paid upfront...
Between a short put and a short call, most people would be fearful of a short put, when in theory a short call is more risky as the underlying could go to infinity, while at worst the underlying could only fall till zero.
Anyway, we need people like that in the market. Otherwise, where would we make the money from?