Is this possible? I have GE stock in my portfolio I bought for 15 dollars but I want to hold for long term but hedge some I have 2400 shares can I write a covered call 24 contracts of GE for april at a strike price of 8 dollars which means I collect 1.70 per share Then buy 24 contracts of GE for april strike price of 9 dollars for 1.14 a share. This leaves me with .52 (- .04 commision) then with the .52 x 2400 = 1248 Buy 145 shares of GE and end up with 2545 shares of GE stock which also helps lower my cost basis. I understand GE could go to 0 I am fine with that scenario. If GE is trading between 8 and 9 on April I will get assigned obviously on expiration. But if GE somehow jumps to 13 (some miracle news) Then my calls I was long (the 9) will 4 dollars intrinsic value correct? so 3-4 days before expiration I can sell those calls and collect 4x 2400 = 9600 right? Just thinking outloud. So I can collect some psuedodividend but not to lose potential upside due to long the call. My longterm account is cash, does it have to be a margin account to go long a call?