[ConservativeOptionStrategies] TM spread/re:why Sep option?

 

I sold the sep 70 so that I would have very little investment (49c) in the trade. I would have preferred a fatter premium AUG sold call but TM is not a very volatile stock so it does not command much premium. I just noticed that the OCT was cheap compared to the SEP so I thought I would give it a try. A gunslinging approach rather than heavy research. I try to learn by experimentation.I would not have done it if it cost much more than the 49cents at the time. If the VIX is higher at time of expiration of the SEP 70 then the OCT could command a higher price. I am still seeing a worst case price of 55cents on yahoo finance for the trade. ________________ Anthony Hills Hills Motors/Hills Industries 4011 Pacific Blvd San Mateo,CA 94403. 650 573 7425 Fax 650 573 8721

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