bear spread | Six Figure Investing

Option spreads, early exercise and other wrinkles

May 14, 2023January 3, 2011 by Vance Harwood

A week ago Monday I created an IEF (iShares Lehman 7-10 Yr Treas Bond) bear spread in my Schwab margin account—with the short calls deep in the money at S90. Several of the calls were assigned that night when IEF went ex-dividend ($0.248/share). Since I wasn’t long IEF, this assignment resulted in a short position being created in my account. I was surprised the calls were assigned since …

Betting on the bear

April 1, 2010 by

I put a bear spread into place on SPY, selling April 100 calls at 8.10 and buying April 108 calls at 1.30 — net credit of 6.80. Worst case loss is 1.2 per call pair, best case profit is 6.8 per call pair.