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


To: KFE who wrote (1556)7/29/2000 4:26:07 PM
From: umbro  Read Replies (1) | Respond to of 2317
 
KFE, regarding your put calendar spread:


Just did a volatility play with a bearish bias.

Sold: OEZTN 5 7/8 (Aug 770p)
Bought: OEZUN 11 5/8 (Sep 770p)

(last trade was 11 1/2 by 17, it has narrowed a little)

What's your profit objective for this spread? Given the big move down, shouldn't this spread have widened more? Isn't the spread supposed to be at its widest when at the money (OEX closed 776.18)?