UPDATE $TIF Options Action trade - mike

26 oct - been 2 months and no updates on-air.. stock is near 62ish.. and this ratio spread is worth about 60 cents.. so about 50% loss with 3 weeks to go.. since you are short an extra Put and its going for about 6 cents.. you might want to buy at least that extra put back in order to get back that margin/buying power you had to set aside. have not seen updates on-air but if you followed into this trade you have to make decision if you think it still has a downside potential or take it off and salvage the remaining premium for another trade.. if downside expectation then maybe close both those short calls and look to "releg" into a put spread if that down move happens.

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31 aug - just been 2 weeks and options action is revisiting this trade., here is the video clip from today, TIF revisit .. the summary seemed to take forever.. first off, see thats why i dont like doing longer dated ratio spreads..you have to wait to near opex to get that profit when the time decay kicks in on those two short puts. additionally, even if stock moves against you a bit you dont see much of a loss either.. carter worth is right, not much has happened, stock is up only 2bucks since this trade was on air..if you are going to go out 3 months on a ratio 2bucks and 2weeks dont matter too much.

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8-17 Mike with a rare 1x2 put spread on options action this week..heres the video clip TIF clip

Buy the Nov 60/52.5 1x2 put spread for $1.20 (but one 60, sell two 52.5's)

i like these trades but rarely do them. as usual i dont like the timeframe, would rather look to do something closer. glanced over quickly is that since you will be short that extra Put, you will have to set aside margin/buying power in case you get "put the stock"..your brokers margin requirements will vary but figure $5250 in margin to buy the stock at $52.50 in nov at opex if you take no action. essentially gives himself a wide profit zone from about 60-45 with max profit being a pin at 52.50 in NOV...scott makes an interesting point that if stock drops a ways you might want to buy it at that level anyway, ie that short put...if you have that attitude that you would be ok buying the stock at 52ish (effective price of 46ish really) then this is an excellant trade..just like selling a naked put.. but if it ACTUALLY drops that low, most traders quickly forget that part and take a loss. all in all i like the trade but i dont follow the stock. only lose money if it drops below 46ish at opex.. thats the other thing, you will not see profits till near the NOV opex since those two shorts are increasing in value as well so you have to be prepared to hold it almost all the way to see your profits..its not a quick trade. see all of mikes on-air trades in this google docs spreadsheet