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LOL agreed about the apple. This one LOOKS feasible and that's why I asked the original question - am I not seeing something you guys are? Also, the margin doesn't seem to factor in, since I'm still at a net debit for the trade.

I don't think you're understanding my logic. Or perhaps I'm not explaining it well enough. I don't care about the capital, its the potential RETURN on capital that I care about. I'm actually buying 5 contracts, BTW. I just don't see a 5.60 buy in for a spread of 10 to be worth it. Its a 4.4...

Yep, did all that and its still expensive. THAT's the scenario I'm looking at. AFTER adjusting for you've mentioned, if the spread is still expensive, what do I do to cut the cost? I'm thinking of selling some OTM premium and that's where I'd appreciate the input. You're explaining the very...

Gotcha. Now Daniel5198's comment lines up in my head. Thanks buddy. :) Dan, you too. :)

Yes, but if you notice, the lower strikes are a long way down. So the probabilities are a lot lower.

Because I don't like the risk/return ratio. This way I go from a potential <100% return to a >200% return

LMAO no, this is for real. And the bull market can KMA........lol. In every bear market (as an extreme case), there will always be candidates for a long trade.

Dan Nathan's site or the strategy itself?

LOL yes I know they're both bullish. Did the payoff graph already, looks fine. I haven't priced the IV into the pricer (I don't necessarily like the OX pricer, so I use my own code if I need to, from the KP function). Jut a bit about my background, I've done fixed income trading, mostly futures...

Hi guys. Long time lurker, first time poster. :) I trade on OptionsXpress. General question: Can I finance a debit call spread with a credit put spread in the same trade? For example, FFIV for Jan 18 expiry: Debit call spread 160/170: Debit 5.60 Credit put spread 130/120: Credit 2.30 Net debit...