12-21-2012, 01:12 PM
I'm waiting to see how Apple finishes up today. Right now the call I sold is "in the money", but my shares will get called away if the stock finishes over $510. If so, I'll sell a put. You can sell a Jan 2013 $500 put for $1470. If the stock is below that on Jan 19th, you have to buy 100 shares at $500 each, but you really only pay $485.30 because of the income on your put.
If the stock ends higher than $500 (as I expect), you don't buy the shares, but you keep your $1470.
If the stock ends higher than $500 (as I expect), you don't buy the shares, but you keep your $1470.
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Currently PvPing in the stock market