I have had a long position in $EWW since 3/4/2013 and wanted to do something with Options that would protect my gains. A newer play that I have been utilizing is what I call the Go Both Ways play. This involves being long stock and then selling a Straddle near the current strike. You could do the same if short stock.
In the case of $EWW I sold the June 72 Straddle on 5/10/2013 collecting $4 in premium. This gave me protection down to $68 but capped my gain at $76.
This has been working ok but today I let the stock piece hit a stop at B/E (entry was 70.85). This means that I am now short the June 72 Strangle and the Call side is no longer covered.
The $70 price level looks vulnerable so I will monitor closely to make sure that it avoids going down too much further. Currently the June 72 Strangle is at a bid/ask of .61/2.55