This is a hypothetical question. Lets assume that we know ahead of time that tomorrows open will be at 100 and it will go straight up to 110 by the end of the day. Were assuming this is what will happen. Ok, at the 930 open, we go long 100shares at 110, and simultanously purchase one 3 month ATM 100 put for $5 (Why if you know its going straight up? Please bare with me.) We also sell two 3 month OTM 110 calls for $1.75 each. At the close of the day, if we sell our 100 shares for $10 profit at 110, and buy back the 100 put we purchased, will this amount offset the loss that we'll end up paying to buy back the two 110 calls we sold? Could the rise in the two premiums at the end of the day be more than $1100 based on each one closing at $7.25pt each from $1.75 each. And would a calendar spread of some sort gives us a better chance.