optionslurker

Nokia Without the Hang-Ups

Maybe i am missing something: the puts are uncovered in this strategy. The broker would reduce the buying power (or charge margin if there is no positive buying power) by a large amount for the duration for which the shares of held. The return should therefore be calculated based not on the net cash outlay, but on the (net cash outlay + reduction in buying power). This reduces a return a lot.
I would do bull put spreads or iron condors instead of this ?