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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who started this subject12/2/2000 9:01:11 AM
From: Steve_GTS  Read Replies (3) of 2317
 
Spread calculations
I found this combination that looks pretty good on the surface. Could anyone comment on its viability.

Simultaneously write a BULL PUT SPREAD on GELX (55/50) for a $4.25 credit and write a BEAR CALL SPREAD
on GELX (50/55) for a $3.6875 credit.

The most I could lose would be $5 but I received $7.9375, so it appears that I have a $2.9375 profit. I pay a $100 per month in commissions
for unlimited trades so there is none included in this example.

Is this too good to be true?
Thanks
Steve
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