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

To: OX who wrote (2258)	2/7/2003 11:05:10 AM
From: the-phoenix	Respond to of 2317

Thanks, that is a risk I had thought of and have emailed my broker to clarify how they would handle the situation. But, given that I have already been assigned the very first day, I have decided not to pursue this strategy, except in a small way. I'm going to carry the spread in increments of eight contracts, and if assigned, I will sell the QQQ and buy a Nasdaq e-mini as an equivalent long position. My carrying costs will be much lower, and if we head much lower I will just close the whole thing out. If on the other hand, we head higher, then the position should show a profit as soon as there is some time premium on the puts as they get less and less deep ITM. The married put strategy here is a decent long-term trade for someone who is bullish and that wants to invest some cash without downside risk and potentially high reward. I, OTOH, don't want to tie up a bunch of cash in this position, which is why the credit spread was so appealing.