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

To: Vol who wrote (1703)	9/25/2000 10:16:27 AM
From: OX	Read Replies (1) \| Respond to of 2317

right, rolling down presents a slightly different, albeit similar problem. note that a huge downmove (say, +150 or so) will put you into negative $ as well. since the LEAPS put will appreciate less due to carrying costs, but your short puts will effectively appreciate $ for $. so if SPX moves -150 since you sold your short ATM put; at expiration, your short put will have lost, for example, -150, while your long put only gains perhaps +100. oops, you just lost more than your short prem rec'd. --- I have no first hand experience of backtesting software, but I hear Tradestation is pretty versatile... I've heard similar things about AIQ.