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Asher78

10/25/14 1:20 PM

#644 RE: zivtheziv #643

Again this is very close to being ITM and approaching danger for you.
The premium you received was nice but you need a spread father otm and with a little time to expiry as possible.
Yes your premium would be less but much likely to expire without the danger of a big loss.
Are you pricing these options on the Black and Scholes pricing model and calculating the probability of profit?