Option Spreads, Credit my Debit Message Board

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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who started this subject	7/18/2000 3:25:50 PM
From: Steve_GTS	Read Replies (1) of 2317

I am looking for some help calculating my position in this option spread. I am having a brain fart and can not see what is really going on here. I bought 5 contracts each. Buy ALSC Jan 17.5 Calls @ 9.375 Sold ALSC Jan 20 Calls @ 10 for a $2.5 credit spread and a positive credit of 0.625 or $312.5 The Stock Rose I bought back the 20 calls for $14.625 and Sold Jan 30's for $8.5 (I think this is where I screwed up) I now created a $12.5 spread x $5 each ($6,250) but at a upfront loss of ($3,062.5) The stock fell The Jan 30's are now trading at $5 and my original $17.5's are $10.25 I believe the stock will be over $30 by Jan 2001. Any tips on how to maximize my position and If I closed out now what would be my P/L. I know this may be trivial for most traders, but I am not sure how to look at this calculation. Thanks Steve

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