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 : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Electric who wrote (43680)	5/20/1998 6:01:00 PM
From: donald sew	Read Replies (1) \| Respond to of 58727

Electric, The premiums are high on the OEX so what I am doing to reduce my risk capital is to buy a put then as it runs down sell a lower strike price put, and vice versa on the call side. Right now I have a put spread in place where I bought the JUNE 435's for 8 5/8 and sold the 425's Monday for 8 1/8, so my risk capital is only 50 cents with the maximum potential of a net profit of $9.50 if the OEX closes below 525 on JUNE expiration. If it gets anywhere close to 525 before expiration I will just close out with hopefully a profit of around $5.00. This is a method, although complicated and needs a bit of targeting, to reduce the risk capital on OEX plays. Seeya I guess its another method of chicken trading.