11:10am (EST)
NEW TRADES!!!
Buy Vivus (VVUS, $10.29, up $0.14)
Sell to OPEN January 11 calls (VVUS120121C00011000, $0.90, flat)
Action: For every 100 shares you buy, sell 1 contract of the January 11 calls for 90 cents. This will lower your cost basis to $9.39. If shares are called away by mid-January at $11 the trade makes 17%.
Buy Ford Motor (F, $10.38, up $0.13)
Sell to OPEN January 11 calls (F120121C00011000, $0.23, up $0.03)
Action: For every 100 shares you buy, sell 1 contract of the January 11 calls for 23 cents. This will lower your cost basis to $10.15. If shares are called away by mid-January at $11 the trade makes 8%.
Buy Alcoa (AA, $8.90, up $0.12)
Sell to OPEN January 9 calls (AA120121C00009000, $0.50, up $0.05)
Action: For every 100 shares you buy, sell 1 contract of the January 9 calls for 45 cents. This will lower your cost basis to $8.33. If shares are called away by mid-January at $9 the trade makes 7%.