Option Spreads, Credit my Debit Message Board

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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: Jon Tara who wrote (960)	10/14/1999 1:27:00 PM
From: KFE	Read Replies (1) of 2317

Jon, Good luck with your spread. So far so good. Nothing wrong with an at the money or even in the money spread if you fell strongly about the direction of the market. Rewards are usually greater than the risk...but you must be right about the direction. OTM credit spreads allow you to be wrong about direction and still make money as long as you are not very wrong. The notion of going far out-of-the-money and risking a 5 point loss for a potential 1 point gain just has never set well with me As I have said before here I believe that your risk is what you let it be. You should determine your stop level at entry. Regards, Ken

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