Tom and Tony discuss the effect of adding a short call to our At-The-Money short put. How did this perform?Study
Portfolio of $1 million
- Allocating 30% short ATM puts, at 50%
- Allocating 30% of short 50P/16C , managed at 50%
We find that adding a short call to our portfolio of short puts did not add to or hinder performance, but adding the call did reduce our portfolio volatility by 0.4% per month.