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Re: rivervalley post# 225

Wednesday, 03/25/2015 2:51:01 PM

Wednesday, March 25, 2015 2:51:01 PM

Post# of 296
My bet:
I sold a $15 put that expires Jan 15th 2016 giving me the obligation to buy Ndls at $15 if it went below that price.

In return I got $160 cash up front.

Another way to think of it is being able to buy 100 shares of Ndls at $15-1.60= $13.40 a share.

What I think could be a good option for you is to sell calls around $22 that will pay you around $120 (I would have to double check) and they expire in Jan 16. Meaning you will be paid $120 cash today but obligated to sell 100 shares of your Ndls ownership at $22 a share if it went above that.
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  • 1Y
  • 5Y
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