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Strategies & Market Trends : Dividend investing for retirement
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To: Steve Felix who wrote (1105)2/9/2008 7:00:36 PM
From: Debt Free  Read Replies (1) of 34328
 
Steve

One thing that I have done in the past with decent success is on stocks that I own is too buy deep in the money LEAP call options, and then sell closer term out of the money calls against the stock that I own. Here is how I am currently doing this with INTC 

Current stock price                         $20.27
Bought Jan 2010 - strike price $15.00        $7.00

time premium ($15 + $7 - $20.27)             $1.73

I then sold against the stock that I currently own the following 

Sold Mar 2008 - strike price $21.00           0.69 

time premium ($21 + $0.69 - $20.00)          $1.69
It is my belief that this gives me tremendous opportunity to profit in numerous ways and numerous times over the life of the LEAP
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