Dan Nathan's Options Strategy That Offers Protection In Apple Inc. For Free
For those who have a long stock position, Nathan recommended a purchase of the May 115 put for $2.40 and he would finance the put with a sale of the May 140 call for $2.40.
Traders who feel that there is a potential for a massive move on the downside, but they also want to be able to participate in a potential move higher should consider the strategy, said Nathan.
Below $115, a trader with a long position is protected and if the stock moves above $140, Nathan said he would have to sell at that price level.
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