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Strategies & Market Trends : Option Spreads, Credit my Debit
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To: KFE who wrote (737)6/4/1999 1:53:00 AM
From: Jon Tara  Read Replies (1) of 2317
 
OK, here's an example. Is that the kind of credit spread you would do? Or is this too close to the money?

OEX Jun 670 calls at 7 3/8 offer
OEX Jun 660 calls at 12 3/8 bid

This seems a somewhat "perfect" example. :)

So, buy a Jun 670 call, and sell a Jun 660 call, for a net credit of 5.

Your maximum gain is 5 (which you realize if they both go out worthless), as is your maximum loss (if it closes above 670).
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