This strategy consists of being long stock, short two calls at one strike, and long a call at a higher strike. All the options must have the same expiration date.
Looking for a slight rise in the stock price.
This strategy profits if the underlying stock moves up to, but not above, the strike price of the short calls. Beyond that, the profit erodes and then hits a plateau.
Earn additional income while holding a long stock position. This is a classic option strategy for lowering the breakeven level of a long stock position that is underwater.
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