Four leg spread

Discussion in 'Options' started by BMK, Feb 5, 2021.

  1. BMK

    BMK

    Is there a name for this type of spread?

    QQQ

    Bought 1 Feb 05 326 Call at 5.59
    Sold 1 Feb 05 326 Put at 6.02
    Sold 1 Feb 05 328 Call at 4.51
    Bought 1 Feb 05 324 Put at 5.21

    I entered this position on Jan. 22, for a net debit of .27, when the stock was trading around 326.15.

    I exited the position this morning for a net credit of 1.92, with the stock at around 330.

    Normally I would have watched it throughout the day and let the position dissolve on its own. The puts would have expired worthless and the calls would have gone through auto exercise to collect the max profit. But I had to be away from my computer for the most of the day, and I reaaaaally did not want to fool around with my broker's mobile app, because I have never actually used it to trade LOL So I got out around 9:35 AM...

    BMK
     
  2. caroy

    caroy

    Pretty sure that's the traditional triple lindy.
     
  3. BMK

    BMK

    I've never heard that term before LOL Google says it is a reference to a Rodney Dangerfield film...
     
  4. caroy

    caroy

     
  5. caroy

    caroy

    Pretty sure a bull credit put spread paired with a debit bull call spread. Not sure you can give it a name other than "custom" - Something clever maybe you could give it a name and founding rights. I like bull swing spread. IDK paying for the debit spread by selling a credit spread. Maybe call it a Dodo Condor. Something creative.
     
  6. BMK

    BMK

    That is certainly one way of looking at it.

    The other way to see it is that it is synthetic long stock with a collar.
     
  7. taowave

    taowave

    You were aynthetically short the 28-24 put spread..or long the 24- 28 call spread

    Long stock with a collar also holds



     
  8. horizon

    horizon

    I think it is call risk reversal.
     
  9. guru

    guru

    Looks like 2 bull spreads. Call and put spreads are interchangeable so this is equivalent two to Call spreads. Since one of the strikes falls in between, you ended up with just a single, wide bull spread 324/328.
    (I didn’t look at performance graph to confirm)
     
    BlueWaterSailor and taowave like this.