{"id":10,"date":"2009-09-14T17:12:11","date_gmt":"2009-09-14T17:12:11","guid":{"rendered":"http:\/\/dailyma.com\/faq\/question-about-victory-spreads\/"},"modified":"2010-02-09T01:49:28","modified_gmt":"2010-02-09T01:49:28","slug":"question-about-victory-spreads","status":"publish","type":"post","link":"http:\/\/dailyma.com\/faq\/question-about-victory-spreads\/","title":{"rendered":"Question about Victory Spreads"},"content":{"rendered":"<p><strong>Q: In your demo video for this spread you say potential losses should be about $50 or so. You refer to favorable pricing. Would you please explain what you mean by favorable pricing? I have tried several scenarios with stocks that I think might be making a move  up but in each case my potential losses were closer to $200.  Today I reviewed AU (Anglogold Ashantilt) selling the oct 35 call and buying 3 Jan 50 calls. If the stock settled between 37 and 50 by Oct expiration I would lose money with the worse loss being $183.  Not bad but more than $50. Am I missing something?  Thank you. PS Am really enjoying the course.<\/strong><\/p>\n<p>A: The amount of loss in a victory spread depends on:<\/p>\n<p>1) volatility at the time of the trade<br \/>\n2) the number of contracts used<br \/>\n3) time to expiration<\/p>\n<p>It sounds like you were using the same example I was as far as contracts go (sold 1, bought 3) so the only differences would be &#8220;volatility&#8221; and &#8220;time to expiration&#8221; which would explain the difference in potential loss.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q: In your demo video for this spread you say potential losses should be about $50 or so. You refer to favorable pricing. Would you please explain what you mean by favorable pricing? I have tried several scenarios with stocks that I think might be making a move up but in each case my potential &hellip; <a href=\"http:\/\/dailyma.com\/faq\/question-about-victory-spreads\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Question about Victory Spreads&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,13],"tags":[],"class_list":["post-10","post","type-post","status-publish","format-standard","hentry","category-options","category-victory-spreads"],"_links":{"self":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/posts\/10","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/comments?post=10"}],"version-history":[{"count":0,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/posts\/10\/revisions"}],"wp:attachment":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/media?parent=10"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/categories?post=10"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/tags?post=10"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}