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I beleive that's a vertical spread Something I suggest you might toss around
that would be more conservative is to consider a bull spread and a bear
spread at the same time(referred to as a box spread). In your example you
would sell one 106 call and sell one 106 put. You would also buy one 105 put
and buy one 107 call. . You have limited risk/limited reward, provided you
don't leg out of the bull or bear spread seperately.This is based on my
knowledge as applicable to stocks. I have not traded futures in a few years
If it works differently on futures someone will correct. There are numerous
strategies regarding options, some of which are very complex as seen here on
recent discussions..
Happy Holidays
Dom
----- Original Message -----
From: "Prosper" <brente@xxxxxxxxxxxx>
To: "Real Traders" <realtraders@xxxxxxxxxxx>
Sent: Wednesday, December 20, 2000 10:34 PM
Subject: [RT] Options question for Ira and other options experts.
> Hi,
>
> I was thinking about an option play that would require that you buy one,
at
> the money put 3 to 6 months out. Then you buy 2 calls out of the money by
> two strikes. Or vise versa (buying a call and 2 puts). Example, buy 1 June
> 106 T-Bond call and buy 2 June 102 T-Bond puts.
>
> I don't know if there is a name for this kind of trade. I would like to
hear
> some of the pros and cons for this idea.
>
> Thanks,
>
> Prosper
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
>
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