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Thanks to both of you for these answers. I have a good picture now of my options (no pun!). I did not expect to receive such thorough, thoughtful answers, so thank you for your time and expertise. Jay

minmike, Since I plan to exercise the puts or let them expire (on the slim chance that BMY was above $75.00 next January), do I need to worry about the bid/ask spread? Going back to my screenshot, if I buy the 75's at the Mid ($13.50), then I have the protection for 47 cents, regardless of what...

Handle123, This sounds very interesting. I will look at this closely. At the same time, since newwurldmn has taught me about the Constructive Trade issue, wouldn't this debit spread have the same problem. Indeed, won't any two-sided position (i.e., something other than a protective put) have the...

I should have been clearer in my first note. I am trying to look at the puts. If I bought the 75 strike today for $14.00 and the stock did not move until Jan, I could exercise the 75 put, receive $75 and exit the position. My actual cost for having this protection for three months would be the...

Am buying some protective puts in advance of cashing out of a large BMY stock position in 2016. In this screen shot, it looks like I can get the protection for a lot less money if I buy a higher strike. In other words, if I put up more money to buy the 75 puts for Jan, I will pay 47 cents for...

I am trying to construct a formula for breakeven for a calendar spread in Excel. I think the formula would consist of: 1) Calculating the value of the long option on the date that the short option expires. 2) Breakevens would be the strike price plus/minus that value Example: 1) Strike is...

Am trying to understand the strategy for using a poor man’s covered call. Using TOS Paper Money’s Thinkback, I: -- Bought SPY Dec 2014 LEAP call 100 for 91.54 on May 28, 2014 -- Sold SPY Jun1 2014 (weekly) call 191.50 for 1.125 on same day -- Closing price of underlying on May 28, 2014 is 191.38...