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You can still do better than $4.50! Sell the Jan-12 $5 Puts for $1.35. In Jan, assuming the stock stays above $5, it will be put to you for $5.
Sorry, confused myself. It won't be put to you, but you still keep the premium to purchase current shares for cheaper. The risk is the stock drops below $5. If it stays above $3.65, you still make out on the deal.
Nice! Value added advice!Thanks