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Re: farooq post# 855

Friday, 10/13/2006 3:22:47 PM

Friday, October 13, 2006 3:22:47 PM

Post# of 2032
It's a credit spread.

Say SPX doesn't move at all.

Both options expire worthless.

I make $.

What I meant was I could sell the 1275 puts and sit naked (risky--true) and collect the credit too.

You may be right it is risky.

But it seems risky to me only if SPX goes below 1225.

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