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Sell your original calls and then sell more. If
worried about being naked just sell a credit spread.
Buying puts is going against the clock. Of course you
should not be in the stock if you think it has no
upside but you can't do that.
Jack
--- cwest <cwest@xxxxxxxxxxxx> wrote:
> Francesco,
>
> I'd suggest reading McMillan on Options to learn
> more about using options in
> strategies. Presumably, if you bought a stock at 5
> and sold a call/strike 5
> for .55, you assumed at the time of opening the
> postion that the stock
> wouldn't rise above 5.55 nor fall below 4.45,
> otherwise you're losing if the
> stock falls and missing opportunity if it rises. But
> trying to change your
> bet as it were after the cards are played isn't a
> strategy.
>
>
>
>
> - Original Message -----
> From: "Francesco Topino"
> <francesco.topino@xxxxxxxxxxx>
> To: <omega-list@xxxxxxxxxx>
> Sent: Friday, February 08, 2002 11:51 PM
> Subject: Options Strategy Solution
>
>
> > Hello everyone,
> >
> > let's say that stock XYZ is @ 5 and Mar02 5 calls
> are $0.55. you buy 100
> > XYZ @ 5 and sell 1 Mar02 5 call pocketing the 0.55
> premium. the stock
> > bounces to around 6 but you believe it is a dead
> cat bounce and it will be
> > below 5 at expiration. is there a way to lock-in
> the 1 point profit on the
> > stock without selling the shares and risking
> having to cover at a loss in
> > case the stock is above 6 at expiration?in other
> words, is there a way to
> > get both the 1 point on the stock and the premium
> on the call? buying a
> deep
> > in the money put might work as long as the stock
> stays below 6. any
> > suggestions?
> >
> > thanks
> >
> > FT
> >
> >
> >
>
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