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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
  • FCX Stock Replacement Strategy 0 comments
    Mar 12, 2013 1:32 AM | about stocks: FCX

    FCX Current Price $33.28 (April Expiration)

    Scenario 1

    Buy 33 Call - $1.27

    Sell 34 Call - $.79

    Sell 31 Put - $.47

    a) You will pay $.01 to initiate this spread

    b) You can participate in the upside from $33.01 to $34

    c) You will not experience a loss in this trade unless FCX falls below $31

    d) This method will only lose $.01 even if the shares fall to $31.01, whereas owning the stock will produce a loss from $33.28 all the way down to that point.

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

    Stocks: FCX
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