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To: jmac who wrote (51243)	11/22/1999 3:38:00 AM
From: RoseCampion	Respond to of 152472

But, I don't understand your example of a credit spread. Long Jan 2001 380 puts, short the April 370 puts. This would not result in a credit but a debit. There's a good reason you don't understand - you're right. <g> I knew it was too good to be true. I'd basically set some volatility-averaging options that caused OptionVue to think that the average implied volatilities for all options as they are now would apply later on, whenever I went to sell the long Jan01 puts. Since near-term options have massive IVs right now, but the LEAPs don't nearly as much, that really put some recreational pharmacutical-style input into the pricing models. Very long story short, it thought I could buy the Jan2001 380 puts today and sell them for a 30-point profit tomorrow, even if the stock hadn't change in price in the interim. This would tend to...um, slightly skew its conception of the "most profitable" strategy. <vVbg> Not that I would have traded on the basis of its "recommendation" (but I did get a bit excited for a moment <g>). Note to others: See how important implied volatility is to option prices? Note to self: when any person, or any program, tells you that anything related to an investment has a 90% probability of profit, you should instantly assume it's a complete lie. jmac, Thanks for pointing my blooper out to me - and kids, don't try that particular trade at home. Or anywhere. -Rose-