Bull call spread not meant to be traded?

Discussion in 'Options' started by a529612, Jul 24, 2006.

  1. If you opened the position when OIH was higher than 130, you need to wait till OIH goes to 150 to get a decent profit. Less than 10 point movement gives you very small profit esp when you consider you have to pay for 4 bid-ask spreads (over 20 cents already).

    If you are moderately bullish, you should write a credit spread using put options.
     
    #11     Jul 27, 2006
  2. rjjaz

    rjjaz

    A bullish position could have also been long the 130 call, and short the 200 call if it existed? if there was a move in the stock to 160 for example, would the short call still move so significantly that the returns would significantly differ than the outright 130 call purchase?
     
    #12     Feb 21, 2015