Advanced Micro Devices Inc (AMD)

[wbmw]

Question on options strategy.

What do people think of this strategy?

Dec '03 $19 call: $0.70
Dec '03 $17 put: $0.70

Here's the situation. I would like to sell both of these short, and I have the shares to cover the calls. To me, I would like to double my position if the stock goes below $17, and pay a price that's less than the current market value today ($17.78). If the stock goes way up, I will sell my current shares at a higher price than the market is paying today and live with the lost opportunity. Either way, I get $1.40 in commission, and if the stock is flat, I'll make some free money.

Any comments? Anyone see anything better?