if a customer had a large cash position, an options strategy would be to write covered puts.
A covered call position consists of buying shares and selling a call on that stock at the same time. When investors buy stock and sell call options on a share-for-share basis, they are creating a covered call position in the financial market. An option strategy would be to write covered puts that are now out of the money if a customer had a sizable cash position.
This is useful when customers wanted to buy the stock at levels below where they are currently trading. In a covered call, investors who own long positions in an asset are automatically obligated to write call options on that asset even when they believe the price of the underlying stock won't rise any time soon in order to boost their income from covered put option premiums.
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