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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?


To: Bridge Player who wrote (7821)5/23/2000 12:35:00 PM
From: SecularBull  Read Replies (1) | Respond to of 8096
 
Agreed, although I might look to increase the spread.

LoF



To: Bridge Player who wrote (7821)5/23/2000 4:04:00 PM
From: Tom K.  Read Replies (1) | Respond to of 8096
 
...the probability of MSFT being over $70 in January 2002 is at least 90%...

Nice post, BP. Shows how you can double your money with an inexpensive spread.

As a PUT seller, if I agree with your forecast, I could sell the MSFT Jan02 70's for 12.5. This would require no outlay of cash and could get me better than twice the return of the spread. If I wanted to be more conservative, could sell the Jan02 55's for 5 and get the same return as the spread (but 15 points safer). Just another way to skin the cat.

Options sure provide a choice for all.

Tom



To: Bridge Player who wrote (7821)5/23/2000 11:46:00 PM
From: Jeffry K. Smith  Respond to of 8096
 
BP - thanks for the post. I never thought of going that far out, but it gives me some ideas to look into other stocks using the same method.

Best,
Jeff Smith