STRATEGY: EXAMPLE: Long Stock + Ratio Call Spread Buy Stock @ 50 and Buy 1 $50 Call @ 3 and Sell 2 $55 Calls @ 1 1/2 each LONG STOCK + RATIO CALL SPREAD P/(L) Stock Price at Expiration Long Stock Long Call Short Calls P/(L) P/(L) P/(L) Total P/(L) Stock Price 45 50 55 STRATEGY: Long Stock + Collar EXAMPLE: Buy Stock @ 52 and Sell 1 $55 Call @ 1 and Buy 1 $50 Put @ 1 LONG STOCK + COLLAR P/(L) Stock Price at Expiration Long Stock Short Call Long Put Total P/L) P/( L P L) P/(L) Stock Price 50 55 60