Option Spreads Explained
ITM vs. OTM credit spread option?
I am aware of the mechanism out of the credit spread of money. Can someone explain how-the-money credit spread in works? Example-BG 52.25 Last BGWOK 55 Mar-09 – P – (Long) BGWOL 60 Mar-09 – P – (short) credit ITM 4.1 1.Do not stand the line of credit until the end, as OTM credit spread? 2.Since short leg is ITM, if you wrote propagation and the next day you called – how is your profit / loss calculated from? 3.Comparison between OTM and ITM spread risks in terms AB Thank you thank you as always return zman! Well, here is interesting-ITM propagation perspective is like looking lottrey random. It depends on the random selection procedure between OCC and brokerage and brokerage and investor. Did I hear right side .. Anyone else agree?
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