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Re: Duma post# 51005

Sunday, 03/07/2010 10:50:45 PM

Sunday, March 07, 2010 10:50:45 PM

Post# of 79026
thanks! for the details Jon . . .
I am very well versed in all option strategies ...
and was mostly asking so that other readers would be clear as well.
Yes, I usually find that the Debit Spreads IN the direction
of the Signal gives you more gains with less risk.
If the underlying price action goes against you ...
it could really start turning into a loss with your Short option
losing money so fast.
In the debit spread, I usually experience a slower loss
because both options are getting more out of the money
and both of their Deltas are sinking quickly.
BUT, the biggest reason is not having the risk of more major losses
if the Short option of a Credit spread gets in the money.
Anyway ... just wanting to hear your thoughts on the Credit Spread
which is much more rarely used by others to ask about.
Thanks !!!!!!

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