Use Options To Buy Battered Stocks For Almost FREE!
Below is a list of widely held stocks that are near their 12-month lows,
or are in the low end of a 12-month range. If you own one of these stocks
and are looking for a 10-20% increase over the next two to three months, here is
a great strategy to take a look at.
This option strategy is called a Repair Strategy and it is a phenomenal
strategy due to the fact that it basically buys you more stock for literally
nothing. We have several ideas of stocks and options to take a look at,
but as always, we recommend that you run these ideas past a qualified options
broker before you place the trade.
The stock and option prices listed below are as of 10 AM (CST). We are
assuming that you already own 100 shares of the underlying stock.
| Stock | Stock Price |
12 Month High/Low |
Idea for Repair Strategy |
Estimated
Cost |
| AMAT | 42 | 39-115 | Buy 1 Dec 40 Call Sell 2 Dec 45 Call |
Can probably
be done for $0 |
| AMD | 21 | 13-48 | Buy 1 Jan 20 Call Sell 2 Jan 25 Call |
Can probably
be done for $25 |
| CMGI | 13 | 13-163 | Buy 1 Mar 15 Call Buy 2 Mar 20 Call |
Can probably be done for a credit of $50 |
| DELL | 25 | 22-59 | Buy 1 Jan 25 Call Sell 2 Jan 30 Call |
Can probably
be done for $50 |
| NT | 33 | 32-89 | Buy 1 Jan 35 Call Sell 2 Jan 40 Call |
Can probably be done for a credit of $25 |
| INTC | 40 | 35-75 | Buy 1 Jan 40 Call Sell 2 Jan 45 Call |
Can probably be done for a credit of $50 |
