ULTY Positions Explained

I take a look at the 4 ULTY trades where they are only put spreads. Even though these are only put spreads they have the same consequences of a Stock - collar strategy. Even though you do not have any stock and no calls, you have only 2 puts, which effectively creates a collar. This distinction is important to understand when planning covered call campaigns of your own or when looking at high yield ETFs. Some high yield ETFs use sold puts and sold put spreads and some use stock plus a covered call and a put for protection. It doesn't matter how you do it, whether you use stock or not, everything is baked into the price of the options. You might be surprised to learn that there is no extra upside that comes from owning the actual shares vs just selling puts or put spreads.
Here is a graphic on Put/Call parity- https://claude.ai/public/artifacts/b7e93cfe-7ce9-43c7-b36e-96907757df81
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Видео ULTY Positions Explained канала Max Convexity