Let me expand on my statement for puts as more risk to reward than calls:
for selling the Put, assuming at-the-money, you may collect 3%. Max upside is 3%, downside theoretical risk is 97%. Also time-value of capital reserves.
For buying a call, ATM, it may cost 2% (calls typically cheaper than puts). So downside is 2%, with theoretical Infintity upside.
Ergo, infinity > 3 % on the upside; 97% > 2% on the downside. I’d hate to be waiting to invest while the market moves higher
Or if you go with selling OOM calls, you might cap your gains, say 6-8%, while collecting 1-2%. I like this strategy as it’s defined returns done quarterly; not too bad over a lifetime.
Bottom line though both are conservative strategies, and you are usually making money either way. Of course you can always pick a historical example which shows one beating the other.
Markets up up this morning. Glad I’m in. Insert strippers-and-blow gif.