What did the puts you bought cost?
If the
stock closes above 160 on Friday the stock gets called,
this I understand. If this happens you would be better
off selling (short if you want to keep the stock) at
174.
If the stock sells between 150 and 160 the puts
expire worthless, yes? In this case you might be better
off with the options, it depends on what the puts
cost. What do you do then, sell new 150 calls and buy
puts at 140?
If the stock is below 150 on
Friday, then what do you do? Sell the puts and keep the
stock? Sell both? Wouldn't you be better off selling
(short if you want to keep the stock) at 174 here
too?
I thought the main attraction of options was
leverage.
It doesn't make sense that you can accomplish
anything different with options + the underlying stock
that you couldn't simply by buying and selling (short)
the stock itself. Options make trading more
complicated, and if used by themselves more leveraged.