Playing A stock with Option

I was recently reading some message board and people where talking about how to play option to their advantage. Since I like to share these kind of information with rest of folks, I decided to share this idea with you all. I have followed Fast Money on CNBC and they have been discussing similar thing in the past. So I decided to share my piece of knowledge with you all.

Lets have a look Bank of America stock. Right now lets say it is trading at 12.50$ per share. So what I do is I buy 1000 share @12.50 = 12500. Now I am going to sell Call Option of strike price of 15.00$ for the month of Nov at @ 1.20. So I sell 10 call option and made 1200$. So my net investment for 1000 share is $12500 - $1200 = $11300.

Now if in Nov, the share Price of BAC is above 15.00 at expiration, I sell my 1000 share @15.00 making $15000. So my net income from 1000 share on BAC is 15000- 11300 = 3700$.

Now if the BAC share don't go above 15.00$ on expiration, I keep all the money by selling call option.

This is like 30% return on Investment (ROI) for the period of three month.

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