juicy credit spreads

[traderlux]

i googled 'special situations option trades' and came across a blog entry by mdw where he was commenting on a question by a reader about another guru's trades.

i wont post any link, you can use goog if you want to see the whole thing.

i will just post the symbols and spreads as they are pretty interesting and have some juicy credits. if anybody is interested, would like to know what other actual credit spread traders here think.

1) FAZ, oct12/13p, 68%
2) SDS , oct29/30p, 51%
3) VXX, oct18/19p, 90%
4) TBT, dec29/30p, 55%

 

[dagnyt]

Quote from traderlux:

i googled 'special situations option trades' and came across a blog entry by mdw where he was commenting on a question by a reader about another guru's trades.

i wont post any link, you can use goog if you want to see the whole thing.

i will just post the symbols and spreads as they are pretty interesting and have some juicy credits. if anybody is interested, would like to know what other actual credit spread traders here think.

1) FAZ, oct12/13p, 68%
2) SDS , oct29/30p, 51%
3) VXX, oct18/19p, 90%
4) TBT, dec29/30p, 55%

Yes, they do have juicy credits.

But those juicy potential profits come with commensurate risk.

The real problem is that they guy recommending the trades tells people that there is essentially no chance of losing money. That's the problem.

Mark (MDW)