Option Spreads, Credit my Debit Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Option Spreads, Credit my Debit

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: KFE who wrote (1810)	11/29/2000 9:23:46 PM
From: smchan	Read Replies (1) of 2317

I looked back thru a lot of old posts last night and I think I understand your general strategy now, Ken. If you have the time, please let me know where your goals/systems may have changed as some of these posts were over a year old. When playing credit spreads: 1) Look for OTM plays approximately 2 weeks before expiration. 2) At least 1 or 2 points on a 5 point spread and 4 points on a 10 point spread. 3) Always exit if a short option comes into the money by either closing the whole spread or the short 1/2 (depending on the underlying). 4) Use expiration breakeven as a stop on 5 points spreads. (Not sure what this means other than you risk no more then the original credit once the position is open; that is your maximum loss will be commissions.) A few questions: do you watch options for a basket of particular underlyings? Or do you scan for spread plays w/o regard to the underlying (at least with respect to your first pass)? Thanks, Sam For the benefit of others, here are some of the older posts I found particularly helpful: Message 10915331 Message 10949847 Message 10464247 Message 10356536 Message 9932852 Message 9920751 Message 7961418 Message 7837916

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next