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try these senarios $24k margined to $48k - buy 10000 stock @ 4.80 buy 100 of jan10 $5 puts @ $2.00 = $20k sell 100 jun5 calls @ .42 = $4200 1. price takes off, say $7 which equates to .2 cg = $2000 + $4200 2nd month $47600 - buy 6800 stock @ 7.00 sell 68 jul7 @ .7 = $4760 3rd month...

Thanks for comments, CFC was a bad example of the trade it was first flat trend I brought up and did not look a any fundamentals. I was looking at placing these trades over several stocks. After margin about 100k to invest, the call premiums, after about 4-5 months are for income, the long 18...

I have been trading options on ASX for a few years, now looking a US trade that is not possible in OZ. Looking for any downsides. Purchase CFC @ 4.80, buy jan10 put @ 2.05, sell jun5 call @.42. The put should be payed for in 4-5 months leaving 13 months of call selling with no risk to original...