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

To: Robert S. Johnson who wrote (639)	2/24/1999 11:19:00 AM
From: dealmakr	Respond to of 2317

Bob, The spread initiated was an expiration day only play. Bot 20 OEYBF 1/8 -250 Sold 20 OEYBE 1 +2000 Closing trades as follows Sold 20 OEYBF 1/16 +125 Bot 20 OEYBE 5/8 -1250 Total credit +5/16 Profit +625 Comish About -180 Net +445 Margin required 10000-1750=8250 % return= 5.39 The play was done only when I felt the odds were in my favor for a winning trade. The position was closed when the possibility existed for a reversal IMHO. Looking at the net % return it meets my criteria to close and move on to another potential position. Total time position open was about 3 hours. In trading the OEX, comish costs are never a factor in my outlook as they are very minimal. The spread however is a big factor and trying to get the better of it will overcome any comish factor IMHO. Expiration day plays have to be opened and closed as quick as possible to protect your bankroll from whipsawing IMHO. Good Trading Dave