Purpose : To recover the value lost on a losing stock position.

Profit When : Up

Risk : Unlimited

Reward :Limited

Breakeven Pt : N/A

Max Profit : [(OTM strike - Stock price now) x number of shares] + [(OTM strike - ATM strike) x number of call options] - Net Debit

OppiE's Note : The idea behind the stock repair strategy is to enable a losing stock position to quickly recover its full value as long as the stock moves up a little, without having to pay extra money. By buying as many call options contracts as the number of shares, you can sell to open twice as many out of the money call options as you have at the money call options, enabling the price of the OTM calls to cover the price paid for the ATM calls, thus no extra money is paid. The stock repair strategy works only if the stock goes up, it does nothing to help if the stock continues to fall.