Noobie Question

Discussion in 'Options' started by oshea1690, Dec 16, 2010.

  1. oshea1690


    Fairly new to options trading - doing mostly paper trades at the moment. On etrade, placing an order on a standard straddle gives the option for price types at market, net debit, net credit, or even. I was just wondering what exactly the difference is in placing an order on those 4. Thanks for the help!
  2. MTE


    If you are buying a straddle then you can only place it at net debit, as you are paying.

    If you were selling a straddle then you would enter a net credit.

    At market is pretty self-explanatory.

    Even is when you are simultaneously buying and selling options then even means that the amount you pay is equal to the amount you receive.
  3. oshea1690


    Thanks for the help.. Makes a lot of sense now that i actually think about it.