Hi Roger,
Using Doug's spreadsheet. Here is one possibility. I'm off to work so I will post one later.
500
$33.15
($16,575.00)
Buy 5 July Calls $27.50 @ 1 1/2 ($750.00)
Sell 10 July CCs $30.00 @ 1 $1,000.00
----------
Credit $250.00
STK $ STK. NUT Calls CC $ CCs Net Result
$27.00 ($3,075) ($750) $1,000 $250 ($2,825)
$27.50 ($2,825) ($750) $1,000 $250 ($2,575)
$28.00 ($2,575) ($500) $1,000 $500 ($2,075)
$28.50 ($2,325) ($250) $1,000 $750 ($1,575)
$29.00 ($2,075) $0 $1,000 $1,000 ($1,075)
$29.50 ($1,825) $250 $1,000 $1,250 ($575)
$30.00 ($1,575) $500 $1,000 $1,500 ($75)
If the stock closes at $30 in July you would only be out -$75.00! |
