michael,
let me suggest another approach other than credit spreads.
naked puts, secured with cash (csp). before you go balistic, hear me out.
a credit spread is a short put, hedged with a long put to limit risk.
(so in effect you are trading naked puts, but with an option hedge instead of...
thanks for the reply, some interesting thoughts. i see what you mean about going nkd on the 40 strike. i have been trading spy bps and wanted to start looking at some possible bear call srpds. i thought the risk was not too bad, a dime out of a dollar strike spread. you think that is no buena? i...
trade idea
wed 100804, uso 36.90
bear call spread
aug -39/+40c, 21/11, 10/100
5.7% otm
possible short term reversal coming?, at upper bb, rsi and macd not yet turned
http://finance.yahoo.com/q/ta?s=USO&t=3m&l=off&z=m&q=l&p=b,e10,e5&a=r14,m26-12-9&c=
trading weeklys,
these two guys have some interesting videos,
optionsrocket dot blogspot, somebody on et posted this link, my thanks to him, john has a lot of good free stuff.
theoptionguru dot com/blog, i have been reading jeff for about a year, i think he has one of the best free...
sbhg:
07-31-2010 9:34 AM
"we are going to >130 on the spy by oct 2010"
with the above in mind, consider,
fas 22.64, aug 24c 95/98
xlf 14.71, aug 14c 84/86
http://finance.yahoo.com/q/bc?t=6m&s=SPY&l=off&z=m&q=l&c=xlf%2Cfas
try this
http://optionsrocket.blogspot.com/
look for "How To Profit From Credit Spreads WEEKLY"
also look at the thread here on et, some one said not to do this tatic, no reason given, but i guess he felt it is too extreme...
some interesting replies, so i just grabbed some...
(tj just cant get away from delta....)
master; geometry, yes, i had to think about it,and i agree, one of our early uses of derivatives, another example of "greeks" at work....
my world view has developed into that every thing is a...
..my good friend is a broker with a full service firm...he wil be glad to help out the op....my friend is 22 and makes $1.25M, so he understands the needs of young people...(my friend is fighting a mass exodus of clients to s----trade, but says most of these are poor clients who want to do their...