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

To: Jon Tara who wrote (960)	10/14/1999 12:14:00 AM
From: OX	Read Replies (1) \| Respond to of 2317

Jon, Best of luck on your trade. If you trade w/ Preferred, do yourself a favor and sign up w/ one of their retail brokers to enter spread orders. I was always found it a hassle to talk to one of the 'if-available generic' phone brokers, so I found myself an options broker on their retail side that I have a dedicated line to. I've also found that, especially if you're going to leg into spreads yourself using their app, go an extra step and get yourself approved for naked option writing. Not so you can write 'em, but so that you can leg in/out on either side w/o restrictions. The other major benefit of this is that you sidestep all the annoying delays w/ their electronic "checks and balances" before they pass your trade on to the exchanges. This is a big time saver when legging in yourself.

To: Jon Tara who wrote (960)	10/14/1999 1:27:00 PM
From: KFE	Read Replies (1) \| Respond to of 2317

Jon, Good luck with your spread. So far so good. Nothing wrong with an at the money or even in the money spread if you fell strongly about the direction of the market. Rewards are usually greater than the risk...but you must be right about the direction. OTM credit spreads allow you to be wrong about direction and still make money as long as you are not very wrong. The notion of going far out-of-the-money and risking a 5 point loss for a potential 1 point gain just has never set well with me As I have said before here I believe that your risk is what you let it be. You should determine your stop level at entry. Regards, Ken