Question: Calendar DITM

Discussion in 'Options' started by 1milclub, Dec 17, 2007.

  1. 1milclub

    1milclub

    Can someone help understand the R/R and suggest a better way?

    Example:
    In Dec. 07, Index @200

    Buy 150 June 08 Call@55
    Buy 250 June 08 Put@50

    Sell 215 January 08 Call @1.50
    Sell 185 January 08 Put @4.00

    Agreed this will tie up a lot as it is DITM.Goal is to generate 4-5% per month.

    Thnx,