Use 'Coach' Options to Get First Class Returns [View article]
Thanks Paul for all your great picks - I started out with options a couple of years ago by following one of your picks. You have made me a lot of money!!! Dan
On Dec 15 02:12 PM Paul Price wrote:
> The actual cash-on-cash return is $14,500 profit on a net outlay > of $8,650 in the 13 month scenario. It is not a $20,250 or a $40,250 > investment in either case as even if all puts were exercised your > net cost would be reduced by both the 'call' and 'put' premiums received > right up front. > > If Coach shares remain above $20 that is all the cash you will ever > put out of your pocket. Margin requirements can be met simply by > having other [paid-up] marginable securities in the same account. > >
Use 'Coach' Options to Get First Class Returns [View article]
On Dec 15 02:12 PM Paul Price wrote:
> The actual cash-on-cash return is $14,500 profit on a net outlay
> of $8,650 in the 13 month scenario. It is not a $20,250 or a $40,250
> investment in either case as even if all puts were exercised your
> net cost would be reduced by both the 'call' and 'put' premiums received
> right up front.
>
> If Coach shares remain above $20 that is all the cash you will ever
> put out of your pocket. Margin requirements can be met simply by
> having other [paid-up] marginable securities in the same account.
>
>