Paul,
have you read any books on options?
Wenn you sell an option, you have an obligation. Find out what that means!!!
Then find out what your max risk is when selling a credit spread or Iron Condor!!!
gis
On Fri, Jun 11, 2010 at 10:46 AM, paul7313 <paul7313@yahoo.com > wrote:
long call; short call; long put; short put
I thought it was 2 spreads; call(short & long) and put(short and long)
using a genaric(any) stock or index. Example;
1 contract
short 50 call+ long 60 call (spread) credit 1
short 40 put+ long 30 put (spread) credit 1
when I open the position, I earn $200
options expire 64 so puts expire worthless, so I keep $100
calls in the money so I lose $100
when all is said and done; I earn $100
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