Backtesting
Tuesday, April 30th 2019
Backtest Question: What's the Difference Between Covered Call, Buywrite and Short Call with Married Stock?
What is the difference between a covered call, a buywrite and a short call with married stock?
Summary
The covered call and buywrite strategies are the same in the backtester, holding 100 shares of stock for the duration of the backtest while trading short calls according to user-set parameters. The short call strategy with the Stock Position parameter set to Married only trades stock at the time of trading options.
We received a question from a customer: What's the Difference Between Covered Call, Buywrite and Short Call with Married Stock?
A covered call and buywrite are the same in our backtester, 100 shares of stock is held for the life of the backtest and short calls are traded according to the parameters the user sets.
The Short Call strategy and with the Stock Position parameter set to Married will only trade stock at the time of trading the options.
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Disclaimer:
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