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optionslearner

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optionslearner

Re: zivtheziv post# 291

Thursday, 11/20/2014 3:45:08 PM

Thursday, November 20, 2014 3:45:08 PM

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Can you explain Simple Spread ziztheziz?


In the example you gave for the $120 Stock and you sell 100-90 put spread...How does it work?....You sell 2 Puts? one at 100 and one at 90? or is it 100 Put Sell and 90 Put Purchase?....Do you Buy the Stock outright during the Hold or just the Options?...Sorry for the confusion...But just trying to wrap my head around it all and Maybe more Lurkers here thinking similar!

Just not sure about which is Bought and Sold in the example and if you are Thinking the Stock is going Down or Up?
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