Mapping other basic option trades: Selling a naked put - Integrating a 3rd party library for a feature vs building it yourself. Immediate benefits, and probabl

Mapping other basic option trades: Selling a naked put - Integrating a 3rd party library for a feature vs building it yourself. Immediate benefits, and probably unlikely to go sideways, but if the framework turns out to suck you suddenly incur a large unexpected body of pain. However, unlike a naked call, there's understood limited downside, limited to the functionality the library provides. Buying a put - Building in any kind of protection from "very low probability but high damage" events, such as provisioning a completely separate infrastructure in the case of a massive DC or network outage, or having a completely separate monitoring system in case the first goes down in the middle of fighting a separate fire. Buying a call - Basically anytime you make an engineering bet that costs a bit of time and is unlikely to pan out but if it does, you win big. Like a spike to try some state of the art algorithm or bringing on a short term consultant to solve a really hard problem. If your whole team is always doing these in the long run you lose, but strategically doing these when they make sense in the long run can result in huge gains. Selling a covered call - Focusing on consulting services vs building a product. Steady income, but in the unlikely case you build something that strikes gold, it won't be you who becomes rich overnight, it's the person who paid you to build it.