Intellipharmaceutics International Inc. (IPCI)

[AngeloFoca]

No, you're not wrong in your reasoning - but it's far more complex than simply looking at it as that if it really takes off you're screwed - for instance on another stock - and I've done this so it's not theoretical.

I sold $10 PUTS and got a certain amount which was like getting the stock - X amount. I then took that X amount and bought 2X the quantity of the $5 calls - so basically above the $10 where my puts don't gain any more... I make 2x the profit because my calls kick in and I also make a profit between the $5 calls and $10

But when you work with options you need to think in percentages, not dollars