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Non-Tech : Any info about Iomega (IOM)?
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To: KM who wrote (38717)12/6/1997 4:39:00 PM
From: FuzzFace  Read Replies (2) of 58324
 
Thanks Truff.

So a bull spread is longing deep-in-the-money-calls when the stock is low,
and shorting an equal number of just-out-of-the-money calls when the stock goes higher. The difference in strike prices is your maximum profit, the difference in premiums is your maximum loss, and the breakeven point is (the average of the strike prices) + (the difference in the premiums)?

And for a bear spread, just change "calls" to "puts"?

And to think, they write books on this stuff. It's too easy! NOT! Tomorrow I won't understand a word of it again. The day after, I'll have forgotten the whole thing.
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