Option Spreads, Credit my Debit Message Board

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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: Dan Duchardt who wrote (2245)	2/6/2003 8:25:37 PM
From: the-phoenix	Read Replies (1) of 2317

One thing for sure is if I was on the other side of that spread with a debit of $980 for something that will be worth between $0 and $1000 in two years, I would have that hedged somehow. Interesting way to look at it. Somebody is on the other side (the specialist firms?), and it looks like a very bad trade from that perspective, unless there is more to it. This trade as a bull put spread seems too good to be true. And you know what they say about something that seems too good to be true. But I still haven't figured out how I'm going to get screwed on this. Can anyone else see where the potential pitfall might lie? TIA

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