IBM: My Favorite Core Portfolio Holding
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This strategy consists of buying one call option and selling another at a higher strike price to help pay the cost and establish a 100% risk-controlled position. The spread generally profits if the stock price moves higher, just as a regular long call srategy would, up to the point where the short call caps further gains. The maximum gain is capped at expiration, should the stock price do even better than hoped and exceed the higher strike price.
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