The Daily Put-Writer is McMillan Analysis Corp.'s daily newsletter service for the avid put-seller. Delivered each afternoon, The Daily Put-Writer provides a list of the most attractive put-sale candidates using McMillan's proprietary put-writing methodology. Trading recommendations are made when appropriate and are monitored closely throughout the life of the position.
Naked put selling and covered call writing are equivalent strategies, however naked put selling is more efficient because it involves only one commission and one bid-asked spread when establishing (as opposed to two to establish a covered write). Moreover, if the maximum profit result occurs (i.e., if the stock is above the striking price of the written option at expiration), there is nothing to do as far as the naked put is concerned, whereas there is another stock sale commission if the stock is called away. Therefore, our preferred strategy for trading recommendations is almost always naked put writes. For a detailed explanation of why we prefer naked puts over covered writes, read the following article.