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

To: KFE who wrote (1564)	8/1/2000 4:39:26 PM
From: Scott	Read Replies (2) \| Respond to of 2317

KFE, Thanks for the heads up on this subject! I am quite new to the concept of spreads, or anything beyond just buying and selling calls and puts. I am still mostly doing things on paper, but thought I would toss an idea or two out. I prefer to deal with LEAPS, as far out as possible so Time Decay doesn't get to me. What I have in scope right now (still on paper, as I'm not yet confident enough to do any real trades like these) are this: QQQ - Jan 2002 Buy the 89's between 23-24 Sell the 115's between 11-12 Total out of pocket (and total risk) = ~$1200/contract Potential = $2600/contract MOT - Jan 2003 Buy the 30's between 15-15 1/2 Sell the 50's between 9-9 1/2 Total out of pocket = ~$600/contract Potential = $2000/contract Is it really this simple, or not quite? It seems at this point that it's really just a wait and see game, hoping it doesn't fall below the initial call price, but if it does at least the loss is hedged. Please, I understand that I have a lot to learn so don't be too rough! Scott.