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To maybe answer some questions: I use Interactivebrokers. They charge 75 cents per option contract ($1 minimum). To open 2 spreads, the cost is .75 X 2 contacts X 2 spreads = 3.00. There is no cost to exercise options - There is no cost to exercise spreads - There is no cost to...

I'm not sure I understand the question. When I referred to about 200 spreads and 50 positions, I was only talking about the acct. with $115K in them. So that averages out to about 4 spreads per position. Also most spreads are $5, but some are 2.5, 7.5, and 10. Is that an answer? Thanks...

Forgot to mention GS was at 220 when I entered, then of course it dropped. Not my finest position. But It's a small pos I'll survive and I might get the 25% return. Still early, and I'm still deep. Cheers.

PHG I was giving you live prices when I sent the message. But that doesn't mean you get the fill you want. You just don't open the spread till you like what you see. Appreciate the comment.

I have 5 of the ABX spreads.

My position sizes run from 2 to 10, with 4 spreads as average size. I like the fact that large positions are difficult, it keeps the market open for little guys. I think that is an accurate statement. I just closed out a PCU JUN07 45/50 @ 3.8 for 4.9. A 3 spread position. Good things do...

for PHG You are misled about the bid ask spread. We don't leg into a spread. We bid the whole spread, generally I split the bid-ask in half and usually have to kick in 5 cents extra. also about GS GS July 195/200 @ 3.8 now has dropped to 3.55

Real life stuff ABX APR07 22.5/25 @ 2.05 now 2.4 AMGN JUL07 60/65 @ 3.85 NOW SAME APA APR07 55/60 @ 3.8 NOW 4.65 BTU JUN07 30/35 @ 4.0 NOW 4.2 CNX APR 25/30 @ 3.95 NOW 4.65 Please don't anybody copy these. All we need is dozens of people trying to buy the same spreads on the same day.

MTE - I going to try to give you a real response when I have time to prepare it. For now: I thought we were on the same side with DITM vertical spreads, but you keep beating me over the head with puts. Basic American capitalism: buy something cheap sell it higher. Hot dog vendors know...

Wait - back up! I don't pay commisions when my spreads are exercised!!! What are you saying?

daddys boy. 1. I don't know how to manage that kind of spread. I will look into it though. 2. I rightly or wrongly do not consider the extra $1.50 commission to exit a spread early a burden. If I were perfect, I'm sure I would. What would be fun and educational as hell (for me) would be...

Wayne, I really appreciate your input. In your post earlier, I got the idea that you considered a long position safer than the DITM spread because of the ability to trade it. Well from MY previous experience I know I can't trade stocks worth a damn. I still prove it to myself on long...

This is a TRADER’S forum. This is an OPTIONS forum. I am not the only one around here who believes in the value of option-based strategies. Doesn’t anyone else feel a little in awe of the flexibility in investing that options give us? No investor puts up his money unless he believes he...

URSA How can I argue with your analysis? You are absolutely correct, that is exactly what the odds say. In fact that analysis stretches out to every investment vehicle doesn’t it? If you buy a 7% bond, doesn’t that mean that if you buy 100 such bonds 93% would pay you the 7%, and 7% of...

A word to Beltway: The 115k means the “liquidation value” of the spreads. The liquidation value contains a certain amount of “unrealized gains”. The “maximum return” of the spreads is the amount that the spreads would return if they all complete perfectly. I’m not giving out...

to beltway again I am maybe over diversified, but I prefer that to underdiversified. A lesson I learned last year. So the account that has 115k in spreads has about 220 total spreads in 54 different stocks and ETFs. Again, not a recomendation.

reply to beltway. I have a more agressive account that amounts to 145K. I have 10k cash, 115k in DITM Bull spreads, and the rest in Long positions. (was 100k in jan06) I have a less agressive account with 62k - with 27.5k in spreads, 46k in long positions, cash is -11k. (was 46k in...

URSA - Now you're talkin'! I live in Las Vegas. I don't gamble in the casinos cause I know the odds are with the house. In thirty years of casual nickles and a few quarters, my biggest hit was a $100 jackpot about 20 years ago. I agree kindof about your quick 0dds assessment. I also...

to MTE, you are making a lot of false assumptions about my trades. I'm handling over $350k in spreads for me and family members. I'm handling over $200K in IRA accounts. I consider it an awesome responsibility, NONE of this money can be replaced if I screw this up. I have been handling this...