The two are virtually equivalent, but there are very slight advantages to selling puts:
* Puts tends to be slightly more expensive than calls everything else being equal * Selling covered calls requires two transactions (stock buy+call sell), costing more in commissions. When selling puts the put buyer pays the stock purchase commission * Keeping cash in the account allows you to use it for to buy short-term treasuries or earn account interest, earning a return on the cash that would be tied to stock * If the calls are ITM right off the bat you're more likely to need to roll over the contract, increasing commissions * If there were dividends you would get them if you sold covered calls - but that's not an issue with ATVI * If you the stock goes down and you're assigned in the case of the puts you'll get the stock at a slightly lower cost basis for tax purposes
ITM calls take two transactions and probably three if you get called out (1 option transaction, 1 stock purchase, 1 assignment). ITM puts are nice if stock rises above strike, you can earn the premium at expiration (its a hybrid of a stock and option as you get both intrinsic value and time value as the premium), however because it is a hybrid combo, its more likely to swing point for point if stock goes down (delta approaches 1). Short puts are a good way to enter a stock position as long as you don't go over your cash-secured position, which was my intention when ATVI was at $12.20 in case I thought I wouldn't mind owning it a breakeven of $11.85; if it rose higher than $12.50, it would have been better for me to own the stock if it rose higher than 12.85 at expiration.