Option Education

[db]

Hi there Lee, thank you for replying to my question to you on the Options Millionaires board; I hope you don't mind that I moved to your board as the topic has more to do with Options Education :)

Here is a copied section of my post to you below:

you posted:
"I entered the trade at 2.07 debit
Bought 5 Dec 555 call 3.58
Sold 5 Dec 575 call 1.51
Total cost (risk) - $1035.00 if below 555
max gain is +8695.00 if above 575
Break even 557.07 above the break even pays 25.00/ penny move.

Now I'll take the last two trades of selling premium to lower the cost or risk of this longer term trade. Do this strategy a few times a week and you'll be amazed at how well it seems to work in your favor. These are all 3 contract trades.

Here's the last two trades posted here on ihub:

1. Thursaday afternoon Nov 21:
Sold AAPL 535/530 weekly call spread for 1.05
Bot 535 call .24
Sold 530c 1.29
Will cover the 530 call this morning
Friday morning Nov 22

My question in RED
What was the expiry of the Sold AAPL 535/530 weekly call spread? Was the expiry the same as the 5 DEC 555/575 Bullish Call Spread you initially opened?

your response in green:
The expiration in red was for the 22nd.

I figured your strategy was to buy back the short side for a gain, thereby lowering the cost of your longs. Then wait for a move and short against them again. You could possibly short the options and buy them back cheaper many times before expiration....so in essence it makes sense that you are selling the nearest term expiration which was the NOV4 13 weeklys, which expired on Nov 22. expiration.

The problem I am having is that I am trying to replay the trade on TOS On Demand and cannot get the $1.05 Credit on the sold 530/535 spread you executed on Nov 21. When I try to put on the same 530/535 spread, I only get a .05 cent max credit that day replaying it on the On Demand feature.

Results I get with the Sold Call Spread that is available on 11/21/2013:

NOV4 13 (1) 530/535
Bot 535 call .05
Sold 530c .07
The credit I show is only .02 cents?

What am I missing here?

Thank is advance for your help Lee.
db