Maybe a strangle spread ? (nm)

Posted by morris onions on 28/April/2002 at 20:09:

In Reply to: I would prefer an October expiry myself. (nm) posted by morris onions on 28/April/2002 at 20:00:

: : I'm very tempted to buy FTSIE 5000 PUTS.
: : But to save my cash, think about this one...
: : - Buy 10 FTSE June 5000 puts
: : - write 15 FTSE June 4800 puts
: : - this is a play on a fall, but not to below 4850
: : ( approx. break even).
: : IF you believe FTSE will fall more drastically eg to bwlow 4800 in 6 weeks, then forget the written leg!
: : But if simply bearish to 4800 then this trade costs very little outlay, but may cost some margin.

Follow Ups:

Post a Followup

Warning
Share prices can go down as well as up. Users of the Information Exchange should seek professional advice before entering into any dealing in securities as a result of references on the Information Exchange. Past achievement is not necessarily a guide to future performance.

Username:
E-Mail:
Include email address in posting:	YesNo
Password:
Need a password? - Click Here
Subject:
Comments:	: : : I'm very tempted to buy FTSIE 5000 PUTS. : : : But to save my cash, think about this one... : : : - Buy 10 FTSE June 5000 puts : : : - write 15 FTSE June 4800 puts : : : - this is a play on a fall, but not to below 4850 : : : ( approx. break even). : : : IF you believe FTSE will fall more drastically eg to bwlow 4800 in 6 weeks, then forget the written leg! : : : But if simply bearish to 4800 then this trade costs very little outlay, but may cost some margin.

---