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Strategies & Market Trends : Options

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To: Jill who wrote (478)1/1/2000 10:27:00 PM
From: Girish Patel  Read Replies (1) of 8096
 
Jan 2002, strike price 200. Calls XQO AT (55 1/4 - 58 1/4); puts XQO MT (61 7/9 - 66 7/8). Big spread. Long calls, short puts. Open interest is low at this time.

You need $60,000 (30%) in margin money for 10 short put options, depending upon your broker. This trade doubles your profit potential with delta of over 1.25 and rising with increase in the price of QCOM. I'd wait for QCOM to take out 185 decisively to put in such a trade.

May be someone can calculate Delta and post it here.
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