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Jan 30, 2015

Options Playbook Radio 45: Combinations, continued.

Continuing from last week, we are still discussing combinations. This information can be found on pages 76 and 78 of the hardcover book, or on OptionsPlaybook.com.

 

Today, Brian discusses:

 

  • Clarification on combinations using a real example: AAPL
  • Long combination, instead of outright stock purchase
  • Looking out to January 2016
  • Rights and obligations
  • How the combination works and its financial impact
  • Don’t forget about margin!
  • How does it work?
  • Who does it work for?
  • What about doing this in an IRA Account?
  • Let’s do the math
  • What about dividends?
  • Let’s take a look at GOOG.
  • Advantages/disadvantages