Calls and Puts for Income Message Board

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Strategies & Market Trends : Calls and Puts for Income

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To: Debt Free who wrote (4674)	10/31/2010 6:08:40 PM
From: dealmakr	Read Replies (1) of 5891

You have a good chance of that call being exercised for a dividend collar and with earnings on 11/02 before ex dividend date, you also have headline risk involved. Downside protection as a result of adding both of the call and put prem written and not counting on the div as the stock could be called using only time value and not intrinsic value of the in the money call is .12 on the call side and .28 on the put side for a total of .40. If you like the stock for a write maybe look at the Dec series calls as there is less chance of the underlying being called away and will give you a better chance of collecting the dividend. dealmakr

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