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Hedged Stock Replacement
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I am a former Money Manager who now operates a website which partakes in outsourced investment strategy. We specialize in non- speculative Stock replacement strategies which utilize Option Spreads. USMC, MBA.
My company:
Hedged Stock Replacement, LLC
  • Non Speculative Stock Replacement Example Of GOOG And QID 0 comments
    Mar 4, 2013 10:23 PM | about stocks: GOOG, QID
    1. GOOG Current Market Price $806.19
    2. Leg 1: Buy the APR 805 Call and pay $28.70
    3. Leg 2: Sell the APR 825 Call and receive $18.60
    4. Leg 3: Sell the APR 760 Put and Receive $12.10
    5. You will be paid $2.00 to initiate this spread
    6. This spread is $1.19 in the money
    7. This spread will expire on 4/20
    8. You can participate in the upside from $805-825(+) $2.00 received in premium = $827
    9. You will still profit $2.00 from this spread even if shares fall to $760.01 whereas owning the shares would produce a loss from $806.19 all the way down to that point.
    10. Due to the premium received ($2.00), you will not experience a loss unless GOOG falls below $758
    11. Please view the tutorial on our site to better understand how market volatility impacts the range between strike prices of these spreads
    12. www.hedgedstockreplacement.com/public/Th....cfm
    1. QID Current Market Price $27.34
    2. Leg 1: Buy the APR 27 Call and pay $1.31
    3. Leg 2: Sell the APR 28 Call and receive $.91
    4. Leg 3: Sell the APR 26 Put and Receive $.49
    5. You will be paid $.09 to initiate this spread
    6. This spread is $.34 in the money

    This spread will expire on 4/20

    1. You can participate in the upside from $27-28(+) $.09 received in premium = $28.09
    2. You will still profit $.09 from this spread even if shares fall to $26.01 whereas owning the shares would produce a loss from $27.34 all the way down to that point.
    3. Due to the premium received ($.09), you will not experience a loss unless QID falls below $25.91

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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