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: jjs_ynot who wrote (1025)	11/8/1999 10:48:00 AM
From: KFE	Read Replies (1) \| Respond to of 2317

Dave, On equity credit spreads I usually use my expiration break even point as my stop. In the SDS trade mentioned this would be 21 5/16. This usually means that I am never risking more than I stand to gain. I feel that this adjustment for equity credit spreads from the usual OEX credit spread stop of the short strike price is necessary because with equity options you generally can't go as far OTM and get a decent credit. Regards, Ken