when mike put on his cade, national oilwell varco was trading for $33.95. >>> scenario one, national d'arco declined. or the price of the stock minus for selling that call. anything below that level though and mike will lose money. >>> give yourself an additional $1.50 downside protection. >> mike makes money off the shares he owns up until $40. at that point, his stock gets called away and mark waves good-bye to his shares. with that $1.50, his real return $4.50. anything above that level and mike's profits are capped. since the time of the trade, shares of national oilwell varco have stopped. >> i like that trade. >> buy back that $40 strike call and try to play stock for both gains. they all want to know the same thing. what will mike do now? >> here is an example why these strategies worked. had mike bought that stock, he would have made about 9% on the trade. by selling that call, mike was able to realize an extra 2%. if you do that every month, you would be a happy person. we showed mike in the package, with shares of national oilwell varco, you do have a choice to make. >> you