: Covered puts and covered calls Why is it not possible to sell covered puts but we can sell covered calls? What happens if I short a stock and short a put?

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If you have account approval to sell options and to short stock then you can sell a covered put as long as you have sufficient margin to support the transaction.

A covered call is synthetically equivalent to a short put. A covered put is synthetically equivalent to a short call. In both cases, unless you are legging into the position, it would make no sense to execute two legs (stock and option) when you could execute only one.