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

To: Tom K. who wrote (166)	6/24/1998 4:01:00 PM
From: ccportfolio	Read Replies (2) \| Respond to of 2317

OK...it may be me who's slow here, but at least let me explain where my thought processes are... For the worst-case scenario, if the OEX finished above your short call or below your short put. Example: 2 sides covered short spread opened by: Sell call at strike of 960 Buy call at strike of 965 Sell put at strike of 900 Buy put at strike of 895 Assuming an average difference of $1 on both both sides of the spread for a total net credit of $2 X 100 - Commissions for each spread If the OEX finishes above 965, then the Call portion of the CvSS instead of being worthless at expiration (which is what you want) would be worth 100 x (965-960) = 500 plus commissions or considerably more than the net credit received for the whole position. This loss is offset a bit by the net credit of approx. 200.00 (minus commissions) initially received. Of course, the put side of the spread would have to expire worthless so there can only be a loss on one side of the spread... which is limited to the difference between the short and long strike prices + commissions - the net credit received.... Substantial still, but not exactly losing your shirt... Am I totally off base here?

To: Tom K. who wrote (166)	4/13/1999 10:43:00 AM
From: John T. Hardee	Respond to of 2317

Yes he like rolls with jelly, He loves treats. But at his size, it takes a lot of rolls. We have a tea party some times before the market opens, at the cement table. Pot of tea, well sugared with rolls and apple sauce. I have the same thing. He was drunk last night some sauer mash mush which I made up from canada yeast and sugar 8 lbs, oats and crushed corn. It was purking for about 11 days till the bubbles slow up. I put a wine purk on it so this stuff will ferment and hold the punch juice. about 7%... He ate about 1 1/2 gal, got 3 1/2 gal left. He is out there sleeping it off. We had some ancient old men over for wine and talked about MADERA. I provided the cheese, tables chairs out there in the work area. I do not see this morning any big breakout on WOOD, wood you believe that. Clinton left that Poor McDougal lady looking like she gained 10 years. I bet Star goes after her, he is not going to take his slap in the face on this deal. If he does, the whole USA will turn against him. One can loose a life trying to look pure. This whole mess stinks. I see our Yugoslav Sloboan Milosevic has signed an Alliance with Russia for sure. Now what do we do. The USA looks like they are not concerned at all. Happy air strikers. XTON is still flying in the wind, not its at 8 1/2. Its a flying idea only. I would say. I owned a piece of the action and it dropped, so I sold, I looked like a crash at the time.