CoverIsBetter

10 Bullish Option Spread Strategies

Agree with naysayers here..
There is a reason these Bull Spreads are so cheap to get into, low chance these stocks move up that high that fast in the dog days of summer.
I have tried your strategy so many times only to see the stock trade sideways or down. As a matter of fact, I am holding your Bull Call Spread idea for USO from MAY 12 (seekingalpha.com/artic...)
and losing money on it.

Just saying.. this is a high risk strategy. My covered calls in WFC, BAC, and F are bringing me better sleep at night.

An Options Trade on GM's Volatility

I guess in my above example, you would close it out yourself, but those Puts could still cost you something to get them back off the street, plus Commission, etc..

Thanks for the idea though.

An Options Trade on GM's Volatility

What if the perfect storm happens, and the stock goes to $4.00, you get Called on the Call leg, for a net loss of $1.00.

Then the stock falls to $1.00 and you get Put-To on the Put leg? Now you are about to go 100% loss on this trade idea.

I could be wrong, but unless you can force the whole clearing to happen at once, this could still lose a ton of your money. Please correct me, if I am missing something. Thanks