[ConservativeOptionStrategies] if I sell a put and a call at the money

> if I sell a put and a call at the money
> Posted by: "paul7313" Thu May 28, 2009
>
> and the market goes up. how do I profit?
> or is it better to buy a call and a put ATM? How do I profit?
> ................
> BUY 500 SHARES AT $9.00 ($4500)
> SELL 5 CALLS AT .75 GET $375
> SELL 5 PUTS AT .75 GET $375
> IF AT EXPIRATION: STOCK OVER 9.00
> STOCKS GET ASSIGNED AT 9.00
> YOU GET 4500 FOR STOCK AND 750 FOR OPTION PREMIUMS
> PROFIT 750 MINUS COMM.
> ........
> STOCK BELOW 9 AT EXPIRY
> YOU STILL OWN 500 SHARES
> YOU MUST BUY 500 MORE AT 9.00
> YOU NOW OWN 1000 @9.00 PLUS KEEP 750 FOR PREMIUMS ON THE OPTIONS
> .................

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