Can being assigned while doing a call vertical option spread make you more money than just a regular spread.? related questions

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Can being assigned while doing a call vertical option spread make you more money than just a regular spread.?1HALP YO2012-11-04 05:43:05
In general I have heard on the boards of a fear of being assigned to play options. When I analyzed my vertical spread I concluded that it might be a good thing, but I was not sure if my math is what I am asking for a check on it. MedlinePlus MedlinePlus Let's say you were assigned to 2 days before because the offer ask spread was a little out of place and it was better for the owner to exercise the option to sell back Inseat. I have a call vertical spread where I went over the 45 and the 48 sold short. Short call was assigned to me and now I'm short file -100 to 48 bases and still I have my call 45. (For simplicity ignore sick debit paid to do the trade). Suppose that the underlying stock is 50. I guess if I end trade now I lost $ 200 in the short 48/50 -100 and won $ 500 in calling for profit of $ 45 300. That is the maximum that could have made the trade if it had sold the vertical. If the underlying stock goes up or down over the next two days I think I keep my profit of $ 300 because the long and short -100 only move together. However, if the underlying stock falls I'm also garunteed at least $ 300 but I think even I could get more. MedlinePlus MedlinePlus when I drop below the strike price of 45 -100 calls short and not compensated for losing money on buying long call. Di underlying drops to 40, due to an oil rig exploded or something. When I sell my calling long I would get nothing, as it is below 45, but my short -100 is now worth $ 800 because my base in the short -100 is 48. So basically a call vertical spread with a maximum benefit of $ 300 may be worth a lot more because of the assignment. I realize you have to pay the interests and concerns of margins, but is correct basic mathematics presented here, it is assigned may be a good thing?
What is debit spread and credit spread? in option trading, pls tell me in layman term?0dukegirl2012-10-22 20:44:57
What is the spread of debit and credit spread ? in transactions involving options , pls tell me in layman's term ?
How can I use the call spread in an option trading?0traivonn2012-10-14 10:00:55
I just learn option trading and do not know how to use the extension called . Any idea ? Thank you.
What is spread trading? How/Why is it better than regular trading? Why should I spread trade equities?0y9122012-08-04 07:07:02
I have the intention to use the software spread trading is hitting new markets in India soon and let me know if it's worth .
Bull Put Vertical Options Spread Question from Iraq?1Shelley2012-09-10 16:35:03
Ok , so I've been trying to educate myself on the vertical margins in my free time here in Iraq . And there are a couple of things I can not get my head around . MedlinePlus I'll use as an example AAPL : MedlinePlus currently trading at $ 99, so you sell a put at $ 95 and buy a put option at $ 90 . And while the underlying stays above 95 , a lot of money for me . MedlinePlus but what I'm not understanding is the potential loss . I have to buy the $ 90 put to limit the loss , but I do not understand how it works. for example, if AAPL goes to $ 93, and my buyer makes selling $ 95, $ 90 from my post is not in the money, do not I have to pay for the shares in the same manner as if naked ? MedlinePlus Moreover, if AAPL is below $ 90, exactly how I can use this to limit my loss ? I can practice how to sell AAPL to $ 90 if AAPL never had to begin with? MedlinePlus MedlinePlus Thanks for the help MedlinePlus Semper Fidelis
When would a trader want to initiate a call spread? and why?0my writing is terrible2012-10-24 21:50:33
I'm reading options strategist Marc Allaire . If I understand correctly , both the downside potential and the growth potential is limited with call spreads . Why would you want to enter a trade , knowing that you can not lose more than $ 500, but you can not make more than $ 500? It makes sense to limit the potential negative, but I do not see the advantage of limiting the upside own .
Buying a option spread?0chevy2012-10-12 10:07:17
looking to trade an option spread with maturity less than April. What is the best trade. What should be my job MedlinePlus What should I buy based on risk reward MedlinePlus against I just want to risk $ 1000 MedlinePlus I want to buy the 2.5 and sell stop MedlinePlus 5 7.5 10 12.5 to 15 Also each month spreads trade at different prices which is best to put an offer in that run
What are the disadvantages of legging into a bull call spread?0phathutshedzo2012-09-28 09:22:03
I was thinking about this , and I could not come up with many reasons not to , but may be missing something I have not thought of. MedlinePlus MedlinePlus Advantages : MedlinePlus 1. more money ( if you bought the long call , and then waited for prices closer to their point of entry to the call just before the sale to open it , you could sell short call for more money than if you bought simultaneously with the call long) MedlinePlus 2. further increase the potential for growth (sales to open the option once the price has risen to more profit shut up immediately ( the credit received from the sale of the short option would cover any potential loss of complete growth spread) MedlinePlus MedlinePlus Disadvantages : MedlinePlus 1. MedlinePlus requires more trade management 2. if the market moves against you , it would have been a little cheaper than putting them all in the same time . ( Credits short call some of the long call debit )
Do you have to use margin to do an option credit spread?0Jodi2012-09-07 03:07:02
For trade and inexpensive stocks put call ? say , Blockbuster or Fannie Mae ?
Bear call credit spread on options trade on LULU?1madzia2012-09-14 18:54:06
Short MAR 62.50 . Long MAR 67.50 . Credit of $ 1.23. I had hoped that the act of filling the void and then when I did not roll the trade maturity due in February March. I'm still waiting for the gap to be filled, but the payoff is March 8 . Any suggestions ?
Should I give up and not ever bother with spread betting and CFD's? Please help me make my mind up? Also......?0Brannico2012-08-04 23:11:49
I am/was considering using spread betting and, or CFD's to trade things like stocks, currencies and commodities. But, I'm doing rather well with just stocks and shares investing. What I would like to know is, for a final decision, is should I even bother with these 2 products at all, or should I give up and not bother with them and concentrate on investing for the long term in the stock market? Also, which out of just investing in the stock market, or speculating on the stock market are you more likely to be most successful in long-term - I mean are you better to get rich long-term slowly but surely by just investing, or have an emotional ride with trading using spread betting and CFD's?
I buy dress bank to make a money on Alibaba, the call says to want to make venture earnest money, the mobile phone does not pick up the telephone, how to do?1Little fool 〆2012-02-23 21:41:47
I can buy the clothing bank to make some money on Alibaba , the call says it wants to make money from serious risk, the mobile phone does not answer the phone , how do?

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