hey cats...here is a real spread...a real spread for the big boys: Sell -100 NDX OCT 2009 1850 Call (.NDYJQ) $3.81 ($38,100.00) Buy 100 NDX OCT 2009 1900 Call (.NDYJR) $1.25 $12,500.00 Requirements Cost/Proceeds ($25,600.00) Option Requirement $500,000.00 Total Requirements $474,400.00 Estimated Commission $250.00 here are the potential results: NDX Current Price: $1721.09 Price Profit / Loss 1290.82 $25,600.00 1498.89 $25,600.00 1717.92 $25,600.00 NDX EXPIRES AT THIS PRICE OR LESS!!!...1850.00 $25,600.00 1852.56 $0.00 1900.00 ($474,400.00) 1936.95 ($474,400.00) 2155.97 ($474,400.00) 2375.00 ($474,400.00)
Personally, interesting... In the ballpark I would say... I have not updated my numbers, but just looking at the numbers could be interesting... Though if it was me I would actually probably play a bit higher... I typically own the underlying (have a portfolio, my friends say I am my own index) and hence I am looking at around 2% per month.