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

To: KFE who wrote (1810)	11/28/2000 3:36:06 PM
From: smchan	Respond to of 2317

Ken, thanks for the pointer. I will read through your posts tonight and see if I can find the strategy discussion. Thanks for your work here... Sam

To: KFE who wrote (1810)	11/29/2000 9:23:46 PM
From: smchan	Read Replies (1) \| Respond to of 2317

I looked back thru a lot of old posts last night and I think I understand your general strategy now, Ken. If you have the time, please let me know where your goals/systems may have changed as some of these posts were over a year old. When playing credit spreads: 1) Look for OTM plays approximately 2 weeks before expiration. 2) At least 1 or 2 points on a 5 point spread and 4 points on a 10 point spread. 3) Always exit if a short option comes into the money by either closing the whole spread or the short 1/2 (depending on the underlying). 4) Use expiration breakeven as a stop on 5 points spreads. (Not sure what this means other than you risk no more then the original credit once the position is open; that is your maximum loss will be commissions.) A few questions: do you watch options for a basket of particular underlyings? Or do you scan for spread plays w/o regard to the underlying (at least with respect to your first pass)? Thanks, Sam For the benefit of others, here are some of the older posts I found particularly helpful: Message 10915331 Message 10949847 Message 10464247 Message 10356536 Message 9932852 Message 9920751 Message 7961418 Message 7837916