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 (1053)	12/19/1999 3:17:00 PM
From: KFE	Read Replies (1) \| Respond to of 2317

JJ, Monday I put on a credit put spread, 5 contracts sold 755 - bot 745 for credit of $750 and a credit call spread, 5 contracts sold 770 - bot 780 for credit of $1,125 Good trade and I can understand the logic behind this part of your post. This trade is similar to selling a strangle but with limited risk. I did a similar trade for September expiration and posted it here at that time. Not a type of trade that I do very often but effective in a short term non volatile market. Also, put on a straddle on the oex Mon. bot 755 put bot 765 call for a debit of $9.00 This part of your post confuses me. This trade is really a strangle and not a straddle. The confusing part is that on Monday you sold a 755 put as part of credit spread and on the same day you bought the same option as part of the long strangle. Being long and short the same option would appear to just increase transactions costs without any trading benefit. After the long strangle was put on you were both short and long a strangle on the same underlying. Am I missing something her or is there a mistake in your post? Regards, Ken