Monday, April 28, 2008

SPY - spreads

Suppose you think that SPY is finally ready to break through resistance at 140. Here are a few ways to play it.

First, I'm going to set a realistic price target and then build strategies around it. In this example, I think SPY could realistically get to 144 by June's expiration.


Credit Spread












Debit Spread













Ratio Spread

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