A covered call and a cash-secured put

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A covered call on XLF (Financial Select Sector SPDR Fund) and a cash-secured put, at the same strike and the November 6, 2026 expiration, so you can compare them. The underlying was chosen to illustrate the idea; it isn't a recommendation. Quotes are delayed. Contracts last selected September 29, 2026.

You own 100 shares and sell a call at this strike. The call is in the money here, because the strike is below today's price; its premium includes the amount the shares are above the strike.

You sell a put at the same strike and set aside enough cash to buy 100 shares there. Compare its chart with the one above: the shapes nearly match.

Change the expiration on either trade to one about 45 days out, then move its date to match, and compare them again. Nothing you change here is saved.

Read the lesson: Cash-secured puts: the same position from the other side.