Option Spreads, Credit my Debit Message Board

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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: Steve_GTS who wrote (1822)	12/2/2000 5:31:40 PM
From: KFE	Read Replies (1) of 2317

Steve, 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. Is this too good to be true? Absolutely. There is not even a remote chance that you could get the prices quoted. Most of the quotes in the option chain appear stale. This is a box spread which is a position market makers trade frequently. If the trade could be done for even a fraction of a dollar credit over $5 they would be all over it. If you were to place an order for a box or butterfly at a credit or even at no debit when it hit the floor they would either laugh at it or be pissed off that someone insulted them and either way the order would not even get consideration. Market makers are not in business to let the public execute free trades. If it seems too good to be true... Regards, Ken

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