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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Mark Z who wrote (1477)	6/4/2000 1:10:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 2317

Mark, FWIW there are a range of option alternatives available. I certainly don't pretend to know them all. The delta-neutral strategy is best used before a big move IMO especially before it blows through your strikes. The put spread is one of the alternatives that I know you use in your short straddle plays. Take advantage of the decay of the put side as the call side rises. Many repair strategies include buying more stock or Leaps in your case and writing additional options. For example, Buy more 2002 XYZ 45 calls and then sell near-in 50 calls. This creates a calender XYZ butterfly. Not sure if that is the best, but it is an alternative. Or you could go long near-term 45 calls and sell the 50's. The idea is to understand the breakeven point for the various strategies. It gets a little more confusing with different time-frames as you have with the long and short side. Regards, Dave