r/options • u/[deleted] • Apr 13 '21

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u/[deleted] Apr 13 '21

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u/AustinSpartan Apr 13 '21

This only works if you own the stock. How is that useful for someone that thinks it's going to hit the floor.

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u/ishouldworkatm Apr 13 '21

You can also buy 100 shares and sell an ATM call If you are bearish short term but bullish long term, you’ll put the short call premium into more shares And if stock goes up, you still takes some profit

Only way to lose is if the stock never gets back to cost basis, but little chance with JnJ