New Trade – combo (short put / long call)

Stock / Symbol: [private_monthly]General Electric / GE[/private_monthly]
Price at trade opening: $16.58

Option Strategy: combo (short put / long call)
Max Risk: $1,575
Max Reward: unlimited
Profit Range: $16.76+

Reasoning:Expect that [private_monthly]GE[/private_monthly] will move up from here to at least $18 by January expiration. This combo strategy of selling a put helps to finance the purchase of the long call. IMPORTANT: While there is unlimited upside to this trade, there is also unlimited downside. We're doing this trade because, given the chance, we'd LOVE to own this stock at $15 a share. If this stock trades lower than $15 by January expiration, and if we're still in the position, we'll be obligated to purchase 100 shares at $15 each.

Trade Details:[private_monthly]
Sell -1 GE Jan11 15 Put $0.29 ($29.00)
Buy 1 GE Jan11 16 Call $1.04 $104.00

Requirements
Cost/Proceeds: $75.00
Option Requirement: $1,500.00
Total Requirements" $1,575.00
Estimated Commission $25.90

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Chart:
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