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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: the options strategist who wrote (753)	12/18/1999 4:14:00 PM
From: Sam2482	Read Replies (1) \| Respond to of 1235

JJ..that was a nice play for less than a week. Do you execute many calender spreads on stocks ? On another option thread there has been a great deal of discussion on using LEAPS as a surrogate for a stock and continually writing short term covered calls on it. This strategy looks interesting but I haven't used it yet. I'm still checking out the possible pitfalls.

To: the options strategist who wrote (753)	12/19/1999 1:50:00 PM
From: KFE	Respond to of 1235

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