Verizon is finally getting the iPhone. This is a good time to do a buy-write on Verizon. It has a forward PE of 13, yields 5.4%, and recently announced a 100M share buyback.
Buy 100 VZ @ $36.35: ($3,635)
Sell 1 Jan 13 $40 call: $215
Sell 1 Jan 13 $35 put: $525
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Total outlay: $2,895
total return if >$40 in Jan 2013: ($365 appreciation + $215 +$525 + $390 dividends) = $1,495 or 52% on a stock that needs to go up by 10% in 2 yrs.
Breakeven: 31.98 or 12% lower than today's price
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