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 : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (17839)	1/2/2002 8:36:06 PM
From: mishedlo	Read Replies (2) \| Respond to of 99280

Anyone here familiar with a time spread options play? I am thinking of buying the QQQ Feb 40 and selling the QQQ jan 40. Total cost = $1. The Jan time will erode much faster than Feb time and a finish exactly at 40 would pocket me $1.5 for the Jan and I am pretty sure leave me with more than $1 on the Feb side. If we go to the moon I will be covered by the Feb 40 call. At anything under 41.5 but over 40 I believe I am ahead, and perhaps in more cases than that. Under 40 I am a loser (I think, unless we rally after expiry which is always possible, perhaps even probable). Max risk is $1, max gain if we rally after Jan expiry is unlimited. Forgetting any rallies this looks like a winner if we stay in a range. I have not tried this kind of play before. Any thoughts? M