Monday, December 28, 2009

Re: [ConservativeOptionStrategies] Re: SPY Leaps

 

I should have been more specific. Assuming I have the original long term position on, I'm looking for ways to earn time premium by creating a  credit spread that uses options that expiring 1 to 3 months. My original position begins to lose money below 700. On the way to 700, (if it ever gets there or 24 months go by), I'm looking to collect short term premium on these 1 to 3 month credit spreads. For example, I sell a 3 month expiring 950 put and buy a 3 month expiring 900 put. I'll collect the 3 month premium each quarter. A sharp drop in the market, will give me 50 points up front, if prices go below 950.
From: joe & leigh <gass20@aol.com>
To: ConservativeOptionStrategies@yahoogroups.com
Sent: Sun, December 27, 2009 6:38:33 PM
Subject: [ConservativeOptionStrategies] Re: SPY Leaps

 

you are already 2 short vs 1 long....what short's are you thinking of? dr joe

--- In ConservativeOptionS trategies@ yahoogroups. com, "asdfffg1" <asdfffg1@.. .> wrote:
>
> On Jan 1, 2010
> Your long a DEC 2012 put at 110 for $1700
> and short two DEC 2012 puts at 90 for $950 each
>
> If you had no choice, and 'HAD' to be in the position above until expiration or prices going below 900 on the underlying, what comes to mind as to how YOU would sell short term premium each month, or each 3 months, if it was allowed in our intial setup rules.
>
> I know there's a million answers, and that no trader trades the same, and there's no holy grail, and on and on. Yes, that's true, but I want to observe the different traders outlook on the market in this scenario in terms of adjustments. I welcome and appreciate all views.
>


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