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Strategies & Market Trends : Gersh's Option trades
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To: Gersh Avery who wrote (5)7/30/2004 4:21:30 PM
From: Allen Furlan  Read Replies (2) of 652
 
Gersh, interesting that options express allows covered spreads in IRA. Your spreads are debit. Does OE require the debit be covered with cash? Are credit spreads without margin. I may transfer to OE since they seem to be most supportive of option trading, ie commissions and Barons top rating.
For the life of me though, I can not figure out how you expect to overcome the commission expense in the long run, even in a flat market. Your original position brought in 2.20 but your protective brackets cost .45 for a net of 1.75. Take away 12 dollars for commissions and your initial bet is that the index will move less than 1.63 out of a possible 3.00 in a 7 week period. All of the adjustments just increase your costs and the market may not cooperate. The market is very efficient and I wonder whether your success is only transient. Comments?
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