Hi Guys, can anyone explain how this spread works, advantages/disadvantages, do you need to own the shares, do you need a broker or can this trade be transacted on the PC, and what is the dollar outlay to get into a trade like this, I have never seen this in any option books.
XYZ currant price $10.00
buy april $9.75 calls at .20 dr
sell april $10.25 calls at .10 cr
nett cost .10
I dont dig it