Stock Repair Calculator
The BCI Stock Repair Calculator is designed to mitigate losses on shares currently owned in stock-only portfolios.
Cells will be provided to enter the option month and current date used to assist with the calculations. There are 3 tabs incorporated into this calculator that will show potential outcomes depending on share price at expiration or when the trade is closed.
What is the stock repair strategy?
Willing to forego potential profit in exchange for lowering the breakeven price point
Not willing to add additional funds to the current losing position
Instead of buying shares at the lower price to “average down”, an at-the-money (near-the-money) call option is purchased and funded by selling 2 out-of-the-money call options
2 long positions (stock and ATM or NTM call)
2 short positions (OTM calls covered by long positions)
This action will lower the breakeven price point
The strategy does not protect against additional downside loss
The strategy does cap the upside
Products are electronically delivered and instantly available via download.
1 Stock Repair Calculator and 1 PDF User Guide