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: KFE who wrote (964)	10/15/1999 12:49:00 AM
From: Jon Tara	Read Replies (1) \| Respond to of 2317

I understand the futures are down tonight, so my spread is looking pretty good for expiration. Yes, I certainly wouldn't do an at-the-money credit spread unless I felt strongly about direction. Given that, I imagine it's probabilistly a better way to play than long puts but maybe not better than a debit spread on the puts? I like the feature that I am selling the ATM calls, which are the ones with the greatest time-value premium. I'll play this game again next month, assuming I have a direction in mind. My sense is that the best time to do this is on the Tuesday before expiration, perhaps Wednesday morning. Wednesday afternoon (when I did it) is a bit late, with the premium slipping away just a bit too fast. I gather from the discussion here that the best time to put on the OTM spread seems to be around 2 weeks before expiration? I like the week-of-expiration version, because I have NO FREAKIN' PATIENCE! :)