Both selling a put and buying a call enable us to enter a stock position in a more capital efficient way. Although the defined risk can limit the maximum losses of long call strategies, the short puts strategies can give a higher average P/L and win ratio (at the cost of unlimited potential max losses).
Our study on SPY shows that when holding to expiration, the average P/L and win ratio of short ATM Puts are both significantly higher than long calls whether they are OTM, ATM of ITM. And if we manage earlier than 21 DTE, the relationship still holds, because short put strategies still outperform long call strategies in all measurements.
Tune in as Tom and Tony walk through the numbers!