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I really hate to support the likes of Peter Sca... ummmm, Spann, but that may be true in some circumstances.

Just like there may even be a difference in psychology between a buy/write and a covered call. Yes it is just the same strategy, but the circumstances at inception could be entirely different.

A buy/write is the simultaneous purchase of stock and writing calls over the stock.

A covered call could be the writing of calls over already existing long term holdings.

If we can assign the two different tags to two different types of trader:

The buy/writer really wants the stock to go up to get the maximum payoff, as he has entered the position speculatively to collect premium and has no intention of holding stock for the long term and wants to be assigned.

The long term holder probably won't write a call if he/she thinks the stock is going up and risk assignment, rather, he/she writes the call because the he/she thinks the stock is stagnating or going down, and takes the opportunity to squeeze some income from it.

The naked put writer is generally (but not always) analogous to the buy/writer, rather than the covered call trader, therefore the psychology entirely different.

Also the buy/writer-covered call trader may use different strikes depending on the traders psychology.

The put trader generally writes out of the money, therefore the strike is below the current price. The buy/writer-covered call trader generally writes ATM or OTM calls, therefore generally at strikes above the current price. (Though I have seen some buy/write "gurus" recommend ITM strikes)

The reasons for this may be predominantly psychological, but there are practical considerations at play as well, such as margin, risk of assignment etc.

So yes, there can be big differences in psychology.

My