Re: [RT] stock picks for 2008 and any option traders?, RealTraders Email List Archive

Thanks for the reply. I think I understand most of what you are saying.

But my question was more about looking at both types of spreads in the same stock price movement direction.

In other words. Lets say we are looking for bullish spreads.

Looking at bullish debt spreads and bullish credit spreads.

When and why, you would use one over the other?

----- Original Message -----

From: Ben

To: realtraders@yahoogroups.com

Cc: panda2222@xxxxxxxxx.net ; Vincent DONOVAN (E-mail)

Sent: Saturday, December 15, 2007 3:29 PM

Subject: Re: [RT] stock picks for 2008 and any option traders?

hello

this are all from msn money

as for a credit spreads

example

spouses you are bearish on ldk

you would sell 10 of Jan 55 calls,

and buy 10 Jan 65 calls,

your max loss is 10000

minus the credit you collect

however

say the credit is 6000

and

ldk closes 1/21/08 under 55

you pocket the $6000

now suppose you were bullish on HP

you would buy the June 08 55 calls

and sell the Jan 55 calls for 1/08

this is a debit spread

but

you are betting that by end of Jan hp is not going to close above 55

and

if it does

you make a lot of money

Ben

----- Original Message -----

From: RB

To: realtraders@yahoogroups.com

Sent: Saturday, December 15, 2007 3:07 PM

Subject: Re: [RT] stock picks for 2008 and any option traders?

Ben,

I was wondering, where do you get the projected growth percentage number from for stocks?

Also a question for anyone who knows option spreads.

Looking at debt spreads and credit spreads.

When and why, you would use one over the other?

Thanks,

----- Original Message -----

From: Ben

To: realtraders@yahoogroups.com

Cc: panda2222@xxxxxxxxx.net ; Vincent DONOVAN (E-mail)

Sent: Saturday, December 15, 2007 2:54 PM

Subject: [RT] stock picks for 2008

qmar

bap

schw

cprt

ge

this has accelrated earnning

low debt

lots of cash

and projected grouth of better then 17%

Ben

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