Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: the options strategist who wrote (786)	7/7/1999 8:08:00 PM
From: dealmakr	Read Replies (1) \| Respond to of 2317

JJ, Original plan on the 740/730 spread entered on 7/1 was to close for a gain of 1/2 or better by Tues/Weds, or if market remained in a trading range without breaking into higher ground look towards expiration. By the market breaking into a series of new highs on the SPX,NAZ &DOW, momentum buying could put my margin at an unacceptalble amount of risk and loss of sleep for me. I use the T Bond also as an indicator along with P/C ratios and even though I think that they are in bearish ground it may not be enough to overcome the risks. Spread trading to me is like being an insurance broker, you fade the risks for a smaller, but more constant reward. When the risk to reward criteria doesn't go in your favor, you lay off the risk by closing the position and looking for a safer rentry. The 2 things that most made me want to close today were an upside breakout of GE and the earnings report of Yahoo overnight. There is always tomorrow for a better read on what goes on, but tonight I sleep well. Good Trading Dave