Yes, but I am already not too happy with my broker there... he told me on the trade you proposed, that one can only lose on it... so I explained it to him...so he said, oh, I see what you are doing... well, duh, you are the broker, shouldn't you have seen this right away...
anyway, to follow up on your proposed trade, I spoke with another broker at Morgan Stanley (which I will open an account with Monday), he had to discuss it with their options strategies office in NY, he called back, and said that the LEAP PUTS will not move as much as the covered calls... and hence, will not be able to close them when the stock rallies, and the stock will be called away... he added that the only way to make money on the LEAP PUTS is just to wait on them for time decay... he suggested a similar trade but for September options, whereby my net profit on the stock will be 57 points in two months... not bad, but I think that I will wait for an opportunity to sell PUTS later...
best regards
amein |
