What the duece!?

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Nov 21, 2008 6:38 pm

How is this not a debit spread? I'm sure it's something obvious that I'm overlooking and I'm sure someone's going to point out that I'm an idiot for missing it. I know that you want the premium of a debit spread to widen and the premium of a credit spread to narrow.

 
 
Buy 1 RST Jan 40 Call; write 1 RST Jan 30 Call
 
The longed premium is more than the short premium which is a Debit spread in which I want the premium to Widen, right? My Kaplan book says otherwise.  
 
Nov 22, 2008 3:31 pm

Read the explanations carefully. It makes sense. Just slow down, and take your time. It will start to click.