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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?

To: JIMAKANCHORAGE who wrote (17882)	12/7/2004 8:03:29 PM
From: yard_man	Respond to of 60927

>>Short the Jan 06 15 2006 put at 5.40 Long the Jan 06 15 call at .60.. bigger bang and collect 5 points premium... worst case you buy at 10. << I guess I do not understand the attraction of this play -- don't you want some time premie when you short the puts ?? -- 15 is so far out of the money you don't get any premie. It's just "synthetic long" -- may as well just buy the stock on margin and save the commissions. I would forget the above trade and instead 1) simply sell the Jan 06 10 put for 1.90 and keep the cash in the account to buy the shares if need be. Or if you really want to go long -- 2) take 1/2 of the put proceeds and buy equal numbers of the Jan 06 10 and 15 calls -- average price of 1/2(1.90+.60) = 1.25.

To: JIMAKANCHORAGE who wrote (17882)	12/7/2004 8:19:47 PM
From: yard_man	Respond to of 60927

Jim -- one more comment on any such plays -- will you take a look at the OI for January 06 -- now that is a sight -- 5k puts and 1 something k calls there. I tell you, I like those odds -- I like them a lot. Strike Symbol Last Chg Bid Ask Vol Open Int 5.00 YTBAA.X 5.00 Down 0.70 4.80 5.10 25 113 10.00 YTBAB.X 1.75 Down 0.40 1.70 1.90 127 1,435 15.00 YTBAC.X 0.50 Down 0.15 0.50 0.60 61 1,974 PUT OPTIONS Expire at close Fri, Jan 20, 2006 Strike Symbol Last Chg Bid Ask Vol Open Int 5.00 YTBMA.X 0.25 Up 0.05 0.10 0.35 30 5,999 10.00 YTBMB.X 1.75 Up 0.05 1.90 2.10 12 5,334 15.00 YTBMC.X 5.60 Up 0.40 5.40 5.80 40 670 Highlighted options are in-the-money. Expand to Straddle View...