Your downside breakeven on the buy-write trade is $81.70 (86.00-4.30). Below $81.70 you lose money.Your upside breakeven on the buy-write trade is $89.30 (85.00+4.30). Above $89.30 you would have been better off buying the stock without selling any calls against it.-----------------So, if you sell 2 puts at $80 (the closest strike to $81.70) you have covered yourself on the down side. Is this called a straddle?Also, wouldn't it be better to sell the put then to do a covered call? If you are long the stock protecting the downside is more important. And, if you wanted to sell a "long" option why not sell a leap?MZ4 - who is finally (he thinks) getting it......I can run a $1M cardiac cath xray machine and fix hearts but can't get options...go figure.
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