I sold a big call credit spread.

hey cats...here is a real spread...a real spread for the big boys:


Sell -100 NDX OCT 2009 1850 Call (.NDYJQ) $3.81 ($38,100.00)
Buy 100 NDX OCT 2009 1900 Call (.NDYJR) $1.25 $12,500.00
Requirements
Cost/Proceeds ($25,600.00)
Option Requirement $500,000.00
Total Requirements $474,400.00
Estimated Commission $250.00

here are the potential results:

NDX Current Price: $1721.09
Price Profit / Loss
1290.82 $25,600.00
1498.89 $25,600.00
1717.92 $25,600.00
NDX EXPIRES AT THIS PRICE OR LESS!!!...1850.00 $25,600.00
1852.56 $0.00
1900.00 ($474,400.00)
1936.95 ($474,400.00)
2155.97 ($474,400.00)
2375.00 ($474,400.00)
 
Quote from increasenow:

hey cats...here is a real spread...a real spread for the big boys:


Sell -100 NDX OCT 2009 1850 Call (.NDYJQ) $3.81 ($38,100.00)
Buy 100 NDX OCT 2009 1900 Call (.NDYJR) $1.25 $12,500.00
Requirements
Cost/Proceeds ($25,600.00)
Option Requirement $500,000.00
Total Requirements $474,400.00
Estimated Commission $250.00

here are the potential results:

NDX Current Price: $1721.09
Price Profit / Loss
1290.82 $25,600.00
1498.89 $25,600.00
1717.92 $25,600.00
NDX EXPIRES AT THIS PRICE OR LESS!!!...1850.00 $25,600.00
1852.56 $0.00
1900.00 ($474,400.00)
1936.95 ($474,400.00)
2155.97 ($474,400.00)
2375.00 ($474,400.00)
More...

Personally, interesting... In the ballpark I would say...

I have not updated my numbers, but just looking at the numbers could be interesting...

Though if it was me I would actually probably play a bit higher... I typically own the underlying (have a portfolio, my friends say I am my own index) and hence I am looking at around 2% per month.
 
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