Methodology of the DITM Vertical Bull Call Spread

Quote from yucca_mtn:

MTE - I going to try to give you a real response when I have time to prepare it.

For now:

I thought we were on the same side with DITM vertical spreads, but you keep beating me over the head with puts.
Basic American capitalism: buy something cheap sell it higher.
Hot dog vendors know this. Country boys know this. I understand this.
Who sells something they don't own, and hopes they never have to pay for it? Consignment sellers, con men, insurance salesmen, fancy fast-talkin' options traders, etc

Who's driving backwards?...
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Oh boy! You know what, next time just take your time to prepare a response cause this quick one really sucks, even better go read a book before responding. It's just goes to show that you don't know sh*t about options, markets or trading in general.

Anyway, who am I to judge your methods! Good luck!
MTE out!
 
Quote from MTE:

Oh boy! You know what, next time just take your time to prepare a response cause this quick one really sucks, even better go read a book before responding. It's just goes to show that you don't know sh*t about options, markets or trading in general.

Anyway, who am I to judge your methods! Good luck!
MTE out!
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Geez, I'm have to start hanging out here on the options thread more often, you guys are relentless, LOL.

Don :p
 
My position sizes run from 2 to 10, with 4 spreads as average size.
I like the fact that large positions are difficult, it keeps the market open for little guys. I think that is an accurate statement.


I just closed out a PCU JUN07 45/50 @ 3.8 for 4.9.
A 3 spread position.
Good things do happen, but I'm sure that was just dumb luck, since I don't know anything about options.
 
Quote from rallymode:

This is the most retarded thread i've seen in months. Cheap gamma at huge -edge, carry on.
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Be careful or you'll find a lot of Condor groupies on your tail. They flock to ET in droves...
 
Thanks yucca_mtn. I'm beginnig to see the picture. They are not very deep, they are way out and CBOE is giving me different prices than what you have shown. So, for GS at about 215 we have July 190/33.50 - 195/29.20 for a debit of $4.30. About 16% ($70) for half a year if you win the whole thing. AMGN is around 69, so the July 60/12.00 - 65/8.00 is a $4.00 debit. 25% if you win the whole thing. Not bad returns in a bull market with good stock selection but in general they look riskier than I would bet my whole pile on. Still, something to keep an eye on . . . (In a really bad market you might even make big money from the buy side!) For comparison, sell a July 65 AMGN put for $1.90 credit. That can even be hedged at 60 for .90. Same income no outlay upfront.

Another perspective is, there are other ways as well to make that kind of money, such as monthly Iron Condors on the RUT for example.

Still, thanks for sharing the idea.
 
PHG
I was giving you live prices when I sent the message. But that doesn't mean you get the fill you want. You just don't open the spread till you like what you see.

Appreciate the comment.
 
Forgot to mention GS was at 220 when I entered, then of course it dropped. Not my finest position. But It's a small pos I'll survive and I might get the 25% return. Still early, and I'm still deep.
Cheers.
 
Quote from yucca_mtn:

My position sizes run from 2 to 10, with 4 spreads as average size.
I like the fact that large positions are difficult, it keeps the market open for little guys. I think that is an accurate statement.


I just closed out a PCU JUN07 45/50 @ 3.8 for 4.9.
A 3 spread position.
Good things do happen, but I'm sure that was just dumb luck, since I don't know anything about options.
More...
How do you spend 175k$ on spreads, like you said on 02-05-07 07:06 PM with numbers like this? Maybe I missed something?

Ursa..
 
I'm not sure I understand the question. When I referred to about 200 spreads and 50 positions, I was only talking about the acct. with $115K in them. So that averages out to about 4 spreads per position. Also most spreads are $5, but some are 2.5, 7.5, and 10. Is that an answer?

Thanks for your sense of humor earlier.
 
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