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

To: jjs_ynot who wrote (1514)	6/28/2000 5:11:00 PM
From: Allen Furlan	Respond to of 2317

Dave, re margin in IRA. Noticed that many posters do directional spreads, ie they have strong opinion on direction of underlying stock. If you have margin and IRA account you can buy long side in IRA and sell short side in margin. Takes more buying power but if your assessment is correct you have tax writeoff in margin account for loss and gains in IRA. Also there is inefficiency in closing positions unless you have sufficient cash in IRA to exercise. Did not see any posts in last 40 dealing with special situation spreads. Did spread on Hannaford yesterday , buying hrdgn and selling hrdgo for 2 1/2 debit. My assessment is that merger by dza will complete before July expiration or at least closing date will be established so that hrd gets above 74. Be careful on this one because calls collapse if merger completes before expiration date. Has there been any discussion on this or other threads for special situations to your knowledge?