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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: Jon Tara who wrote (992)10/18/1999 11:02:00 AM
From: Jon Tara  Read Replies (2) of 2317
 
Has anyone else noticed what is going on with equity option spreads?

You can, in some cases, buy spreads out several months for the same price as a November spread!

Here's an example - the SUNW 90-100 bull spread. (Buy the 90 call, sell the 100 call).

Nov 4 5/8
Jan 4 7/8
Apr 4 5/8
Jan 01 4 5/8
Jan 02 4 5/8

I dunno if I should consider these bargains, or a big, flashing "warning" sign... :)

It suggests to me that traders are, like me, expecting an imminent disaster. probably means that, instead, the market will just continue to leak for months.
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