BIDU

Posted by Jack Haddad on December 17, 2007 at 3:00 pm

Bought 5600 shares at 352.46 and hedged them by writing 56 Dec strike 360 calls at 9.20/contract. I don’t mind pocketing the entire premium on the calls by this coming friday and holding the shares.

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Comment by admin
2007-12-17 15:12:36

$9.20 per contract, wow that is a steal. So by writing those calls you have downside protection all the way until $343, interesting. If the stock goes up the worst that happens is your shares are taken and you still pocket the premium. If the stock stays flat you keep the premium and the shares, and sell more calls? Very cool cool

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Comment by JackH
2007-12-17 16:06:55

You got it, Blain! It’s exactly right!

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