Question
I own 100 IBM shares (priced at $120) and I expect the IBM stock price to decline by about 20% over the next 25 days.
I own 100 IBM shares (priced at $120) and I expect the IBM stock price to decline by about 20% over the next 25 days. I decide to write one deep in-the-money call option contract with a maturity of 40 days against my IBM holdings. Is this an appropriate strategy for me, given my belief? Explain fully.
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
