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Thanks for your help Dom.
So I can understand your post better could you state what you think
the order would actually be. IE buy one 106 call and sell a call at
___ and then buy a 106 put and sell a put at ___.
Thanks
Prosper
--- In realtraders@xxxxxxxxxxx, "Dom Perrino" <domenick@xxxx> wrote:
> Options are very useful instruments. They can be used alone e.g.
buy calls
> or puts; in conjunction with stock ,futures, or other entities the
can be
> used to protect profits, limit losses and many other strategies. I
strongly
> recommend reading up on options because of the many uses they can
be put to.
> Regarding the particular example first bear in might that would
have
> resulted in a credit to your account since the sale of the two
options
> would be greater than the purchase of the other two. If there a
sideway move
> let all options expire and you keep the original credit . If a move
above
> 107 or below 105 you can sell all and the gain on the call and/or
put
> should be greater than the loss on any diferrential move on the put
and call
> sold. Another thing you can do is to leg out the two winning
options on a
> swing up and leg out the other two on a downswing. I do not
recommend this
> because it will leave you with one uncovered option. There are many
creative
> ways to use options from the simple to the complex .
> P.S. Ira's post gave an example of how option use come to you
as your
> need for them arises.
> Dom ----- Original
> Message -----
> From: "Prosper " <brente@xxxx>
> To: <realtraders@xxxxxxxxxxx>
> Sent: Monday, January 15, 2001 1:34 PM
> Subject: [RT] Options question (buy both a bull and bear spread)
>
>
> > 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:
> > > > realtraders-unsubscribe@xxxxxxxxxxx
> > > >
> > > >
> > > >
> > > >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxx
> >
> >
> >
> >
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