W weewilly Jun 19, 2007 #11 he's long 5 50/60 call verticals with 5 extra long 50 calls: +10 50C -5 60C a "conventional" ratio spread (ShortMore) would be: +5 50C -10 60C and a "conventional" backspread (LongMore) would be the reverse: -5 50C +10 60C
he's long 5 50/60 call verticals with 5 extra long 50 calls: +10 50C -5 60C a "conventional" ratio spread (ShortMore) would be: +5 50C -10 60C and a "conventional" backspread (LongMore) would be the reverse: -5 50C +10 60C
D daddy'sboy Jun 20, 2007 #12 Quote from torontoman: Buy x number of calls, Sell a lower amount of higher priced calls in the same month. eg. Buy 10 xyx $50 calls AND sell 5 $55 calls in the same month. I've never seen this advised. Thanks, Torontoman More... The position simply emulates that of a 'cheaper' long call. Why would you do it when you can just buy an outright call? That's probably why you've never seen this advised. db
Quote from torontoman: Buy x number of calls, Sell a lower amount of higher priced calls in the same month. eg. Buy 10 xyx $50 calls AND sell 5 $55 calls in the same month. I've never seen this advised. Thanks, Torontoman More... The position simply emulates that of a 'cheaper' long call. Why would you do it when you can just buy an outright call? That's probably why you've never seen this advised. db
