No. of Recommendations: 0
Hi. My question is since a spread is a one-time transaction, from the perspective of the brokerage, is the other leg of the spread nullified if one leg is completed?

For example, I buy a spread on intc for January 2014: I write a put for 18 dollars and buy a call for 20 dollars. During that time, intc falls to 18 or below and I must buy 100 shares (one contract). Does that mean that the call part of the spread is now dead, or does it continue independently toward the expiration date?

Also, what would you do? Make the spread for jan. 2014 or jan. 2015?

Thank you; I look forward to your response.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.