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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Oeconomicus who wrote (23115)8/3/1998 4:18:00 PM
From: James F. Hopkins  Read Replies (1) | Respond to of 94695
 
RD ; I think I got it , You buying the high in the money put,
and writing the lower one , which at the time was just in the
money. Do you buy the same number you write, or do you
balance the dollar amount ?
I'v never done this type of spread, heck I guess it could work
on any option, and I need to look at it more.
Jim



To: Oeconomicus who wrote (23115)8/3/1998 5:57:00 PM
From: yard_man  Read Replies (1) | Respond to of 94695
 
Theoretically better than bear call spread, which generates a credit.
I would like to do this, too. Unfortunately, I have a discount broker who doesn't understand and considers the one side naked even though it is cover by the put purchased. Good luck with it, but I think the odds are in your favor if you went far enough out in time.