kotika98

A Crocs Play for Chickens

Long stock + sell call = sell put
(by put/call conversion parity)
so in essence, you are selling 200 puts . No wonder your breakeven point is 10 - 2.80 = 7.20
It is indeed a limited risk/limited reward situation, and will likely turn out profitable. After all the probability of Corcs going bankrupt is significanly less than 28% IMHO.