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Strategies & Market Trends : Tech Stock Options
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To: Linda Kaplan who wrote (56130)10/22/1998 9:26:00 PM
From: ViperChick Secret Agent 006.9  Read Replies (4) of 58727
 
Nah dell thread gives me a raging headache
I am not kidding

one place to go that will give you some info on spreads is
www.equityanalytics.com

the horizontal calendar spread in this case would be

sell the Jan 400 for the huge premium
buy the Nov 400 call for protection

then when WFC drops..you close out the Jan call before the nov unless you want to be naked

I have not done this kind of spread

i happened to see someone mention this one for WFC on the market gems thread...i think he said he got it from an article by mcmillan as far as a strategy..

i have done the one where you are long the Jan and sell the nov
you use the long Jan call or put as protection and you flip the nov back and forth...I have done that with index options and txn puts

I have been studying up on this other kind of spread on WFC....on quote.com

it is a little difficult because they are so thinly traded...

another strategy would be

to use the same month and buy one strike and sell the other..but you are left with exposure between the two strikes...

OCCASIONALLY you will see the option premium almost cover the entire risk...but those are few and far between...

there is a nice site...and I dont have the bookmark at the moment
it calculates the spread plays for you
it was done by a member of SI...I think his name is doug and you can get the site from the covered call thread..

I want to get that bookmark so I will look for it tomorrow if no one else has it
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