Index Options that will expire worthless in Aug07 -- POST here !

[jj90]

There goes RUT. 740 perhaps? 760 looks like it's gonna get blown out too.

 

[WD40]

<img src="http://elitetrader.com/vb/attachment.php?s=&postid=1547500">

 

[WD40]

<img src="http://elitetrader.com/vb/attachment.php?s=&postid=1547502">

 

[WD40]

<img src="http://elitetrader.com/vb/attachment.php?s=&postid=1547503">

 

[WD40]

The key is to position the strikes far enough to expire worthless, but close enough to earn some premium.

This recent drop will be a test for many credit spread methods.

 

[funrettig]

Quote from WD40:

The key is to position the strikes far enough to expire worthless, but close enough to earn some premium.

This recent drop will be a test for many credit spread methods.

It seemed like a lot of traders unwound their credit spreads on friday for a loss. I hope they come back soon, vols are so high right now

 

[MTE]

Quote from MTE:

I don't see the point either, but what the heck...

SPX - below 1485 & above 1580
NDX - below 1950 & above 2125
RUT - below 790 & above 880

As to how I got these...sorry, it's a proprietary calculation.

The markets never stop to amaze me, I make one prediction on ET and it blows up in my face!

The Aug settlement prices are:
SPX - 1,450.11
NDX - 1,876.33
RUT - 802.72

So that's 1 out of 3 (thanks to the Fed)!