Hi Gis, I am 101% sure you know that with credit spreads, money is put into your account when the trade is initiated, and not when the options expire worthless. Paul's original question was around expiration of options and in that context what I said earlier was right.
And of course what you said (If I got a credit for the options I sold, then I want them to expire OTM) is also right in its own context:-)
Cheers
On Sat, Aug 22, 2009 at 5:09 AM, Meuter Gisbert <gismeu@gmail.com > wrote:
Viky,
I beg to differ.If I got a credit for the options I sold, then I want them to expire OTM
<<when options expires OTM, they are worthless (zero value) and no money is put into anyone's account (regardless of debit or credit spreads).>>
gis
On Thu, Aug 20, 2009 at 10:47 AM, Viky <vikas.basantani@gmail.com > wrote:
when options expires OTM, they are worthless (zero value) and no money is put into anyone's account (regardless of debit or credit spreads).On Fri, Aug 21, 2009 at 12:38 AM, paul7313 <paul7313@yahoo.com > wrote:
when I have a debit spread, does it put cash into my account when it expires OTM?
__._,_.___
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading. All messages and postings, and any materials circulated are provided for discussion and educational purposes only. No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice. All investors are encouraged to consult a qualified professional before trading in any security. Stock and option trading involves risk and is not suitable for most people. There is no guarantee that any information provided is accurate and, may in fact, be wrong. It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student. As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
.
__,_._,___
No comments:
Post a Comment