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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Engr27   😊 😞
Number: of 15052 
Subject: Re: Boomer Candy
Date: 06/30/2024 9:33 AM
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Although the pay-off diagrams of covered calls and cash secured puts are the same at expiration

I think the detail that is often missed is that an OTM put is equivalent to an ITM covered call.

If the OTM put expires worthless, then you have collected the premium and do not own the stock.

At the same stock price the covered call will be ITM. You will have collected the premium and you no longer own the stock (it was called away).
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