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

To: NateC who wrote (572)	2/17/1999 7:04:00 PM
From: KFE	Respond to of 2317

Nate, Leg out if Dell breaks 85... means that if it goes above 85 I will have to a make a decision that day on which way Dell is going to go and cover the short position first (85's) if I think that it is going to go up or the long position first (90's) if I think Dell is going to go down that day. What you refer to in your question could be called legging up. Normally you wouldn't put on a spread with the purpose of legging it because you now leave yourself open to full market risk. However, legging out of a spread can salvage a profit out of a trade that went against you but it increases your risk. Good Luck and trade smart. Ken Hope this helps you. Ken