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Kellogg Stock Hasn't Moved Much, so Use This Strategy to Make Money

Covered-call writing, a favorite strategy among options traders, can be expanded and given greater flexibility with the covered straddle. This expands the potential for generating current income, without adding market risk. It addresses the understandable frustrations options traders have when dealing with range-bound stock.

The covered straddle combines a covered call with an uncovered put, both of which are out of the money. It is a much more conservative strategy than a short straddle, which is "uncovered" because it is not combined...