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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: NateC who wrote (619)2/21/1999 9:00:00 PM
From: KFE  Read Replies (2) of 2317
 
Nate,

You looked like you had one that would be hard to beat. At those prices prices the risk vs. reward would be very favorable. Think that you may have made a mistake on the bid for the ZDOC. Have it as 1 5/16 bid not 1 15/16. Net credit would be 13/16.

FYI
Maximum risk for a credit spread is the difference between the strike prices minus the credit received. If your trade could be done for 1 7/16 credit then the maximum risk would be 1 1/16 (2.5-1 7/16).

Ken
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