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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
  • HLF Non Speculative Stock Replacement Example 0 comments
    Mar 12, 2013 1:36 AM | about stocks: HLF

    HLF Current Price $41.50 (April Expiration)

    Scenario 1

    Buy 41 Call -$3.50

    Sell 43 Call - $2.35

    Sell 38 Put - $1.80

    a) You will be paid $.65 to initiate this spread

    b) You can participate in the upside from $41-43 (+) $.65 received = $43.65

    c) You will not experience a loss in this trade unless HLF falls below $38 (+) $.65 received = $37.35

    d) This method will still profit $.65 even if the shares fall to $38.01, whereas owning the stock will produce a loss from $41.50 all the way down to that point.


    Please visit our site and sign up for our Weekly Newsletter and Free Trial which we will evaluate the Stocks you choose.

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

    Stocks: HLF
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