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Strategies & Market Trends : Advanced Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: AurumRabosa who wrote (206)	9/10/1998 11:26:00 PM
From: EJ	Respond to of 355

Ron, You mentioned a lot of ways to consider the trade...I tend to break it down to its most simplistic form. The spread I put on (10 contracts) will simply either make $750 or lose a maximum of $4,250. Once the spread is placed don't do much worrying. I know I will lose on some trades. If it does run above the short position then it's time to think about a dance to try to save a little or possibly turn a potential loser into a winner. The key to my success is simply winning much more often than losing...which I need to do since in most cases I either make $1,000 or have the potential to lose $3,000. I am however scared of naked positions...and simply will not do them. I working pretty fast tonight...not sure I caught your butterfly example...please elaborate. Thanks for the dialogue, Eric