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The original post was about a calendar spread using a LEAP, and you
immediately told the poster that he should be thinking about doing
a reverse calendar spread instead, just opposite to his intent.
Then you said that this calendar spread was really a "covered write",
and you must know that the two strategies are really very different.
Now Mark Simms is just pointing out that when it comes to executing
a trade in options, you cannot buy the bid and sell the ask, so he
recommends to the original poster that the trade be "re-profiled".
In other words, Mark says to use a more reasonable debit of $2.75
when you enter the order, which is the same debit that you accept
and use for the "value" of the spread. You are correct that the
the order should be entered as a spread order, but looking at the
bid and ask quotes for each option gives you a ballpark figure for
the debit that you can do the trade for.
Neal
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