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I'll assume you know nothing, so please don't be insulted! We're talking about Vertical Spreads - meaning you simultaneously Buy and Sell 2 different Options which expire in the same month. The price difference between them is referred to as the Spread. It's normally $100, $250, or $500 -...

Thanks for your time and details. I just used the $100 example to make the math simple. The online commissions are nothing now of course. What hair I have left is white, so I remember paying a few hundred dollars in commissions and making phone calls to the Broker to Buy 100 shares! Sounds...

I see. Cool. When you Sell To Close a $100 Bull Call Spread, and both Strikes are totally In The Money, can you get $100, or do you have to unload it for $97? If so, that $3 + $3 commission = -6% profit lost. Is this a problem, versus the Bull Put Spread expiring worthless at no cost? Or...

Interesting. Wonder why that is. (?)

Any preferences here on Buying Bull Call Spreads vs. Selling Bull Put Spreads for an Uptrending Stock? I've preferred Selling Bull Put Spreads because you can just let it expire wothless, versus Selling the Bull Call Spread to close and paying another commission. But maybe they've got it...

A good thing the Buy Limit at 576 did miss! Whew! for you! I also remember that 549.00 trade was the one I didn't want to happen.... But it did, and now you're up 16+ pts. Congrats! AAPL could fall all the way to 500 easy enough, but it's not gonna fall to zero. There will be a snap-back...

Still "Buying" the Pullback (Bull Flag) Adding to Long Position via January 510/505 Spreads Long Term Uptrend still intact! PE Ratio getting Smaller! Debt the Same (0.00%)! :)

Thanks. I get a lot of what your saying, and some of it I probably do intuitively. I come from a Chart Reading/Trend Trader background, so I tend to approach it more pictorially than mathematically. Diversify quite a bit, set the Max Loss of each Spread at 2% of Equity, and lessen that even...

Yes, AAPL went through 555.00 today. Next test is 550. The Market has never cared much about what I thought before, so why should it start now? Anyway, I'm still happy with the January 555/550 Credit Spreads. Lots of Time left, the Longer Term Trend is still up, and there's a nice Bull Flag...

Just saw your 5/6% per year note. So you're talking .5% per month? Not simpler just to get a Dividend Stock in a long term uptrend? I need to make much more than that. We'll see if I can do it. If I can't, I'll just be working until I drop. It's Do or Die time for me.... :D

Sorry, I don't understand some of your terminology and abreviations. Just a Retail Trader! Will need to ask some (possibly stupid) questions, if you can stand it! Here's the first 3. Whenever you have time.... 1. 50bps means 50 basis points to me, but I don't see that number by the June...

So you'd Sell a SPY Jun 120/119 Put @.05 LMT, figuring there's no way SPY would go below 120 in a month. Yeah, that makes sense. Good point. The problem for me there is account size. For instance, one of the AAPL Jan 13 555/550 Credit Spreads I opened yesterday cost me roughly $250 to make...

Hi. You won't get any wiseass/sewer talk from me. Don't believe in it! Anyway, after years of Buying/Shorting Stocks & Buying Calls & Puts (with only streaks of success at best), I came across some YouTube videos about Vertical Spreads. I looked into it a bit further, and now all I do is sell...

I think about it often. Especially since I went Long at 13.58 back in February! Hope, Hope, Hope.... Pray, Pray, Pray.... :p

Went further Long in MNST. Showing lots of Relative Strength on a very Bad Day. :cool:

Went further Long in AAPL today, via Selling January 555/550 Bull Put Spreads. Support Easily Holding in Low Volume on a Terrible Red Day like this? Is the Bottom in for AAPL? I think so. We'll find out soon enough. :cool:

This chart still looks OK to me, with 1340-1350 holding as Support. The worst prediction I've heard is 1300, but that's just more guesswork of course. Still, this Dip is nothing so far compared to what happened last Summer! :eek:

What does Cramer say on Mad Money? "That was Easy!" Not so easy now. Any predictions on when the AAPL chart will show it going from 550-650? What will be the catalyst? Problems lessening in Europe? Dollar falling back a bit? A good employment number? :confused:

It hasn't Bounced yet, but it stayed above 555.00 and the Volume was at a non-panicky low average. A Soft Landing perhaps? Or maybe it's been forming a Launch Pad for a Blast Off in the near future? Anyway, I need AAPL to make 620 by July 20th for my Spread, so I hope it doesn't Dilly-Dally...

I don't know your purchase price or when you'll be selling of course, but my rough calculations say you'll make a nice net profit on your Spread if PCLN ends up between 620-ish and 550. That's almost exactly the range in which I'd be going Long, via Selling an October Bull Put Spread...