MOLI VIEW™

Many investors have experienced a loss on an investment and simply want to break even on the trade. Unfortunately, this isn't possible without committing more capital to your losing position in order to "average in" at a lower price. Or is it? The Stock Repair is an options strategy that lets you give up any profit potential in exchange for a new, reduced break even point, without committing any new capital!

The Stock Repair involves purchasing one call option and selling two call options for every 100 shares held. The purchased call option should be at-the-money while the two sold should be at a higher strike price with both expiring in the same month. The positions are structured such that the investors cash outlay is minimal or none, since you get a credit for the two sold and only a small debit for the one purchased.

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