Options Talk - Episode 22 - plain shares versus combo with options Options Talk - Episode 22 - plain shares versus combo with options Options Talk - Episode 22 - plain shares versus combo with options

Options Talk - Episode 22 - plain shares versus combo with options

Options 10 minutes to read
Koen Hoorelbeke

Options Strategist

Summary:  In Episode 22 of 'Saxo Options Talk,' Koen Hoorelbeke and Peter Siks explore the benefits and considerations of buying plain shares versus combining shares with selling options premiums. This episode is a must-listen for traders looking to enhance their investment strategies by leveraging the advantages of both shares and options.

Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks.

Introducing episode 22 - plain shares vs combo with options

"Episode 22 - plain shares vs combo with options" provides a detailed comparison of two investment strategies: buying plain shares versus combining shares with selling options premiums. Koen and Peter delve into the practicalities and outcomes of each approach, offering insights to help traders make informed decisions.

You can listen here on the podcast-site if you don't see the player above

Understanding the use case

  • Comparison setup: Evaluating the outcome of buying 300 shares of a stock versus buying 200 shares and selling a straddle.
  • Focus: Stocks with high option premiums due to high volatility.

Key definitions

  • Straddle: Selling both a call and a put option with the same expiry date and strike price.
  • Bullish view: Assuming the stock price will increase.

Scenarios and outcomes

  • Scenario 1 - Stock increases to $25:
    • Buying 300 shares: Higher profit due to direct stock ownership.
    • Combo strategy: Slightly less profit but involves less initial investment.
  • Scenario 2 - Stock stays at $20:
    • Buying 300 shares: No profit or loss.
    • Combo strategy: Profit from the premium received by selling the straddle.
  • Scenario 3 - Stock drops to $15:
    • Buying 300 shares: Significant loss.
    • Combo strategy: Reduced loss due to the premium buffer from selling the straddle.
  • Break-even scenario: Calculated at $17.34, where the combo strategy neither gains nor loses.

Extreme scenarios

  • Stock doubles to $40: Buying 300 shares is more profitable.
  • Stock halves to $10: Combo strategy results in a lower loss compared to owning the stock outright.


  • Advantages of combo strategy:
    • Provides a buffer against losses with the premium received.
    • Profitable in sideways or slightly downward moving markets.
    • Requires lower initial investment compared to buying all shares.
  • Advantages of buying shares:
    • Higher profit potential in a strongly bullish scenario.

Practical advice

  • Consider using options: Enhance returns and manage risk by incorporating options into your strategy.
  • Evaluate volatility and premiums: Assess the stock's volatility and option premiums before deciding on a strategy.
  • Benefit in uncertain markets: The combo strategy is particularly beneficial in uncertain or moderately bullish markets.

Why listen to episode 22? For traders and investors looking to refine their investment strategies, Episode 22 of 'Saxo Options Talk' is essential. Packed with practical advice and expert insights, this episode will help you navigate the complexities of combining shares and options to optimize your returns.

Subscribe and stay ahead

Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.

Join the discussion

After tuning in, join me on my X profile or my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.

Your questions, our answers

We're eager to hear from you! Send your options-related questions to optionquestions@saxobank.com. Selected questions will be addressed in future episodes, providing customized advice and insights.


"Episode 22 - plain shares vs combo with options" equips traders with the knowledge to make strategic decisions when combining shares and options. Koen and Peter’s expert insights and practical tips provide a comprehensive guide to understanding the benefits and risks of each approach. Tune in to transform your trading strategies and maximize your investment potential with these expert strategies.

Previous episodes of the "Saxo Options Talk" podcast
Previous "Investing with options" articles
Previous "What are your options" articles
Other related articles
Why options strategies belong in every trader's toolbox
Understanding and calculating the expected move of a stock ETF index 
Understanding Delta - a key guide for Investors and Traders

Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website. 

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