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Strategies & Market Trends : Calls and Puts for Income

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To: dealmakr who wrote (4662)10/16/2010 10:42:03 PM
From: Gottfried1 Recommendation  Read Replies (1) of 5891
 
dealmkr, I'd buy the stock and sell a near straddle. If the stock gets called I profit by [straddle premium - (stock price - strike price)]

If the put is exercised I own twice the shares at [please do the math :)] and then sell next month's deep itm calls.

right now
AAPL is 314.74
$310 Nov straddle is $30.50

I've done this with other stocks. Preferred outcome is: the stock gets called

AAPL options finance.yahoo.com
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