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

To: jjs_ynot who wrote (1759)11/9/2000 10:05:50 PM
From: Seldom_Blue  Read Replies (1) | Respond to of 2317
 
Questions to the thread:

I bought some HAND puts a couple of days ago, Feb. 70 at 12 3/4. I really did not like the market then. The price of the common was at 82. Today the stock is at 77, but the option is barely at 14 1/8. I was going to wait until the stock drops to sell the Feb. 65 or 60 to get my premium back, then wait for the profit.

Now I am concerned my strategy maybe flawed. The delta seems too low. It will take a dramatic move down to make it worthwhile. Should I wait for my chance to sell the Feb. 65 or just get out of the position? I am ahead by about 1 point.

I still have not figured out a good (safe) way to play the downside of the market, as I am neutral to bearish these days.

Seldom Blue



To: jjs_ynot who wrote (1759)11/10/2000 10:25:12 AM
From: KFE  Read Replies (1) | Respond to of 2317
 
Dave,

You seem to be doing more calendar spreads these days

Yes, a low risk strategy in this market. The majority of my calendar spreads are done as IV trades but the NITE trade was more of a directional trade although a jump in IV will always help a long calendar spread.

By the way, were those puts or calls that you spread?

Calls

Regards,

Ken


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