Comments on: Stock Replacement Strategy – The Plan http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html Having Fun with Options Sun, 15 Jan 2012 07:34:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Stock Replacement Strategy Series | My Adventures into The Street http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html/comment-page-1#comment-277 Stock Replacement Strategy Series | My Adventures into The Street Fri, 26 Oct 2007 13:32:42 +0000 http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html#comment-277 [...] Stock Replacement Strategy - The Plan [...] [...] Stock Replacement Strategy – The Plan [...]

]]> By: Jorge http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html/comment-page-1#comment-275 Jorge Fri, 26 Oct 2007 10:41:41 +0000 http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html#comment-275 I just used 50 shares as an example. I believe in the last segment, The Cycle, I use Cramer's general rule of thumb of shorting 25% of the controlling shares from your long calls. Thanks for the tip though. I may make some clarifications on this segment! I just used 50 shares as an example. I believe in the last segment, The Cycle, I use Cramer’s general rule of thumb of shorting 25% of the controlling shares from your long calls. Thanks for the tip though. I may make some clarifications on this segment!

]]> By: JohnFromMichigan http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html/comment-page-1#comment-274 JohnFromMichigan Fri, 26 Oct 2007 05:42:43 +0000 http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html#comment-274 I think you might be a little light on the short shares. If you short 150 shares, you can pay for your call purchase with the $ from the short. Now, if you can sell near the money calls and they expire, you pocket the difference. Do that for three months, and you can generate about 30% of the total you put up. I'm still trying to find all the risks. I may try to put together a spreadsheet with a simulation. I'm stuck now on the various ways to unwind the whole thing. I think you might be a little light on the short shares. If you short 150 shares, you can pay for your call purchase with the $ from the short. Now, if you can sell near the money calls and they expire, you pocket the difference. Do that for three months, and you can generate about 30% of the total you put up.

I’m still trying to find all the risks. I may try to put together a spreadsheet with a simulation. I’m stuck now on the various ways to unwind the whole thing.

]]> By: www.feedthebull.com http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html/comment-page-1#comment-271 www.feedthebull.com Thu, 25 Oct 2007 11:22:12 +0000 http://investingadventures.com/2007/10/stock-replacement-strategy-the-plan.html#comment-271 <strong>Stock Replacement Strategy - The Plan</strong> The second phase of this strategy involves shorting common stock and calls against the long calls. The calls act as protection against your shorts. This effectively creates a put against your calls with the shorted common and additional premiums with t... Stock Replacement Strategy – The Plan

The second phase of this strategy involves shorting common stock and calls against the long calls. The calls act as protection against your shorts. This effectively creates a put against your calls with the shorted common and additional premiums with t…

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