Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: OX who wrote (1704)	9/25/2000 10:32:12 AM
From: jjs_ynot	Read Replies (1) \| Respond to of 2317

OX, I haven't had a chance to post, but I agree that rolling is the big problem. I had looked at the consequences of a nominal 5 percent move up and down from month to month and you end up with some very ugly scenarios in rolling from month to month. It appears that you either end up rolling fairly deep ITM short-term options with little time premium or end up with the position being under water for quite a while as you lose more on the long side than you gain on the short side. I need to read more on diagonal calendar spreads to determine all of the issues. Regards, Dave