I think that’s a good idea. Slowly add to a position that’s working, but respect the power of buyers. Nothing wrong with Priceline the company…but the stock now seems to be correcting.
Bear Put spread and Bull Put spread – Dan I continue to confuse myself. For a Bull position “or better” means a lower cost ?? and for a Bear position “or better” means a higher cost ?? Is that correct ?? LNKD for example was $3.90 to place the Bear Put Spread, assuming the reasoning, if you puchased for $4.10 and the Stock moved down your result would be better, is that correct ??
The ‘or better’ is going to be determined by looking at the strategy as a net debit vs. net credit point of view. If it’s a net debit, your buying something, examples would include longs calls, long puts, bull call spreads, bear put spreads etc. A net credit would mean your selling, short call, short put, bull put spread, bear call spread. The ‘or better’ just means that price or, if you’re able to get a price improvement (lower price if you’re buying – net debit, higher price if you’re selling – net credit).
What do you think about adding to PCLN short now?
I think that’s a good idea. Slowly add to a position that’s working, but respect the power of buyers. Nothing wrong with Priceline the company…but the stock now seems to be correcting.
Bear Put spread and Bull Put spread – Dan I continue to confuse myself. For a Bull position “or better” means a lower cost ?? and for a Bear position “or better” means a higher cost ?? Is that correct ?? LNKD for example was $3.90 to place the Bear Put Spread, assuming the reasoning, if you puchased for $4.10 and the Stock moved down your result would be better, is that correct ??
The ‘or better’ is going to be determined by looking at the strategy as a net debit vs. net credit point of view. If it’s a net debit, your buying something, examples would include longs calls, long puts, bull call spreads, bear put spreads etc. A net credit would mean your selling, short call, short put, bull put spread, bear call spread. The ‘or better’ just means that price or, if you’re able to get a price improvement (lower price if you’re buying – net debit, higher price if you’re selling – net credit).
Hope that helps.
Josh