Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jon Tara who wrote (745)	6/5/1999 8:05:00 AM
From: dealmakr	Read Replies (1) \| Respond to of 2317

Jon, The % return would be measured against the amount of capital required for the time period used. A theoretical example; OEZFT ( OEX June 700 Call) 15/16-1 OEZFB ( OEX June 710 Call) 3/16-5/16 You could enter a spread here for a credit of +5/8 or maybe a bit better. The return would equal, Margin required +comish - premium recieved. for round numbers using 10 contracts. Margin = 10000 Comish = 60 Premium = 625 10060 - 625 = 9435 % return would be 6.6 on 9435 of capital for a risk period of 10 days. I don't know if I would enter for that long of a timeframe risk, but may wait until mid week and then look. If I could get a point on this one, I would chance it early in the week on a continuation of Fridays rally. Good Trading Dave