Hi Toofuzzy, I bought SLW at $17.88 the other day and now want to set up a couple of options trades having done well with another one recently, but I have a couple of questions.
"The Complete Guide to Options Selling" says, on page 51, that buying a call is a bullish strategy and selling a call is a bearish strategy so why the mix? Did you do this because you think that the market is in a doldrums period and is not going to go very far in either direction? Or is there another reason?
Also, what expiration date(s) did you use?
TDAmeritrade shows a $10.0 Call, spread between $7.15 and $8.95 and open interest of 698 for January 20th expiration and zero interest for December.
As to the $25 call TDA shows the $25.0 Call, spread between $0.21 and $0.23 and an open interest of 4,843 for a January 20th expiration.
If I understand this correctly, buying the $10 call cost ~ $800 per contract but selling the $25 call would only get you about $22/contract. So how does one cover the other?
Or did you sell the $10 Call and buy the $25 call? I'm confused.
Thanks,
Allen
