Hi Trey....we're getting close:
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Remember our discussion? I thought I'd be in misery from it being to high; never thought we'd see 13, but as of today, I am actually winning.
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Sure...it's a slow day. It costs nothing to side bet, like I said. For you (since you agree that buying the spread is what you want to do) the stock has to be at least 1/2 point higher than 21 3/8 or lower than 13 5/8, which represent just the break even points. To
make any money on it, it has to be even higher or lower than those thresholds. Since I don't think he's doing this to breakeven, you've got to win by 1/2 or more. 1/2 point represent about a 36% return (1/2 over 1 3/8).
I, on the other hand, since I've sold it as my spread, already have a profit, so I can use the sum of the option premium as my winning bands. If it closes on December's option Friday at or anywhere between the bands, I would win.
If you agree, then one of us will publically ATTABOY the other on this thread. |
