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.

For more questions visit our FAQ.

Go to wheel.orats.com to try it out!

To see pricing for various levels of the backtester, go HERE.

If you need to upgrade or cancel your subscription you can do that HERE.

Check out backtesting blogs HERE

Unlocking Profitable Strategies: How ORATS Backtester's Advanced Metrics Reveal Opportunities

Discover your favorite backtests by filtering on several popular performance metrics such as notional return, sharpe ratio, and percent of time in market.

Optimizing Options Backtests Days to Expiry, Deltas, and Technical Indicators

Filter millions of backtests based on different parameters, technical indicators, and exit triggers for all types of options strategies.

Avoiding Common Problems with Backtesting

Learn how the new ORATS Backtester tackles common problems with backtesting, such as overfitting and path dependency.