One poster recommended selling the jan 2011 put and using that premium to buy the june 60 call.The put premium is higher than the call premium so how can you lose unless the stock tanks below 40 and your put the stock?I cant see that scenario happening now that they have approvalAm i missing something? It seems like a great trade to make!
A little bit of Margin requirement would be needed...$6k per contract (assuming 60 put). I'm thinking of doing a diagonal debit spread.
The put would be 40s and the calls would be 60sIs there any risck to the trade other than if dndn tanks below 40?If that doesnt happen it seems the pu premium pays for the calls and you get a free ride til juneyou also need the margin in case the stock is puit to youDo i got this right?