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 (997)	10/18/1999 11:28:00 AM
From: Jon Tara	Read Replies (2) of 2317

Guess you can tell I'm new to spreads... I think I got it all backwards. A spread should widen as it approaches expiration. (well, and ITM one, anyway...) So, these far-out spreads that are the same price as the expiring month, are really expensive, rather than cheap, right? Or the expiring month is a bargain... Am I correct that it is unusual to find the same spread value for the near-term month and a LEAP 2 years out? Or is this typical for a spread that straddles the stock price? If this IS unusual - what does it imply?

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