[Metastockusers] OPTION STRATEGY

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face=Arial>I am considering an option strategy and would like some
opinions/comments/suggestions.

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<font size=2 color=black
face=Arial>First, the stock:   
SOHU.   I have a short
trigger set at $11.60.  At which
point I would normally short 2,000 shares.

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<font size=2 color=black
face=Arial>I&#8217;m thinking about buying 20 May 12.5 Put contracts, for what would be
$5,100 cash outlay [I&#8217;m using the Ask of $2.55]

<font size=2 color=black
face=Arial>I&#8217;m also thinking about writing 20 May 12.5 Call contracts, for what
would be $3,300 of income. [Assuming $1.65 asking price]

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face=Arial>For a total outlay of only $1,800. 
To control 4,000 shares of stock!

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<font size=2 color=black
face=Arial>At the same time, the June contracts would be a total cash outlay of
$1,700.

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face=Arial>Does anyone do this type of thing already?

<font size=2 color=black
face=Arial>Any choice over which month to go with?

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face=Arial>Thanks for any opinions/comments/suggestions;  Hope it gets everyone thinking.

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