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Technology Stocks : INTEL TRADER

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To: Gersh Avery who wrote (3850)9/9/1998 5:04:00 PM
From: MonsieurGonzo  Read Replies (3) of 11051
 
Gersh RE:" gravestone doji on MSFT daily close..."

...consider, 2:1 = long 100P : short 105P

But true delta neutral for this PUT Ratio BackSpread probably requires (a lot) more contracts to get (a net credit taken in for the position) the exact delta ratio.

If it runs away from you (up), you get the net credit taken in.

If MSFT collapses (down), your profit is open-ended; though you would have to break ~97 support to really hit the torque-curve of the 100P's leverage effect.

-Steve
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