[RT] Options question (buy both a bull and bear spread)

["Prosper " <brente@xxxxxxxxxxxx>]

Hi I have been thinking about Dom's suggestion. Seems that this idea 
may be a good one. How would a person manage the position after 
entering it, for example if the security goes no place but sideways. 
Or if it breaks out stronly one way or the other. Or if there is 
extreem volatility like the spoos have experienced over the last 
year. Thanks for you input and thanks to Dom for suggesting this.

Prosper 

--- In realtraders@xxxxxxxxxxx, "dom perrino" <domenick@xxxx> wrote:
> I beleive that's a vertical spread Something I suggest you might 
toss around
> that would be more conservative is to consider a bull spread and a 
bear
> spread at the same time(referred to as a box spread). In your 
example you
> would sell one 106 call and sell one 106 put. You would also buy 
one 105 put
> and buy one 107 call. . You have limited risk/limited reward, 
provided you
> don't leg out of the bull or bear spread seperately.This is based 
on my
> knowledge as applicable to stocks. I have not traded futures in a 
few years
> If it works differently on futures someone will correct. There are 
numerous
> strategies regarding options, some of which are very complex as 
seen here on
> recent discussions..
> Happy Holidays
> Dom
> ----- Original Message -----
> From: "Prosper" <brente@xxxx>
> To: "Real Traders" <realtraders@xxxxxxxxxxx>
> Sent: Wednesday, December 20, 2000 10:34 PM
> Subject: [RT] Options question for Ira and other options experts.
> 
> 
> > Hi,
> >
> > I was thinking about an option play that would require that you 
buy one,
> at
> > the money put 3 to 6 months out. Then you buy 2 calls out of the 
money by
> > two strikes. Or vise versa (buying a call and 2 puts). Example, 
buy 1 June
> > 106 T-Bond call and buy 2 June 102  T-Bond puts.
> >
> > I don't know if there is a name for this kind of trade. I would 
like to
> hear
> > some of the pros and cons for this idea.
> >
> > Thanks,
> >
> > Prosper
> >
> >
> >
> > To unsubscribe from this group, send an email to:
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> >
> >
> >
> >


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