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As shown in this picture, how do I execute the strategy highlighted in yellow? I am based in the UK. enter image description here

Source: http://seekingalpha.com/article/274231-intel-dividend-champion-in-the-making (10/6/11)

Bob Baerker
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1 Answers1

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The Options look like this (I clipped to show just these two).

Intel Options

You call the broker, and buy 100 shares of INTC for $2,132 and then ask to "Sell to Open" one contract of the September $23 call for $41, which is what it trades at this minute. If Intel goes to $30, That guy you sold the $41 valued option now has $700 for his money, and you just sold the stock for $2300, instead of $3000. Selling covered calls for these small amounts is no way to get rich.

JoeTaxpayer
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