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Strategies & Market Trends : DayTrading the OEX -- Ignore unavailable to you. Want to Upgrade?

To: InsideTheMarket.com who wrote (14)	3/7/1998 1:16:00 PM
From: prakash	Read Replies (1) \| Respond to of 94

OEX spreads I bought DELL calls on friday and I think I'm in for a wild ride on monday. CPQ blew up I think there are going to be more of these and the indexes will soon start to go down. I don't know if any of you have ever established a bear spread. I am thinking about starting one on monday. If I long Mar 505 at 7 3/8 and short Mar 500 at 5, I will be establishing a credit spread for 2 3/8. If by end of march OEX closes at or below 500, I will make $5 from this spread. Given the fact that S&P is at its record levels and the warnings and earnings season has just begun, I think this is a reasonable risk/reward. $5 from $2 3/8 (before commissions) in two weeks doesn't seem that bad. Any comments, experiences? Thanks in advance. Prakash