As noted in an earlier post, I purchased shares of Newmont Mining and then established a covered call trade by selling May-21 $60.00 calls. Today, I sold some May-21 $60.00 puts but fewer than the number of calls I sold. This position is what I call a partial covered straddle. Had I sold the same number of puts as calls then it would be a covered straddle.
If you aren’t familiar with covered straddles (let’s be honest, they aren’t that common), here is a definition from Investopedia:
A covered straddle is an option strategy that seeks to profit from bullish price movements by writing puts and calls on a stock that is also owned by the investor. In a covered straddle, the investor is short on an equal number of both call and put options which have the same strike price and expiration.