Question: Credit Spread

Lightspeed said: "Hi Folks, I just joined today...I'm happy to see a healthy community with newbies and veterans alike. I have a couple of questions for anyone willing to help me out: 1)Why are there several different symbols and prices for an identical strike price? The QQQQ for example. If I decide to play a credit spread on the Qs, how would I know which corresponding higher and lower strike to short and long? 2)If I am already in a credit spread….can I sell another short position, making that 2 shorts and 1 long? Or do I have to buy another long position to cover the short? Does that mean I am naked for one of the shorts? I appreciate any feedback. Cheers guys!"

drdan said: "[QUOTE=Lightspeed]Hi Folks, I just joined today...I'm happy to see a healthy community with newbies and veterans alike. I have a couple of questions for anyone willing to help me out: 1)Why are there several different symbols and prices for an identical strike price? The QQQQ for example. If I decide to play a credit spread on the Qs, how would I know which corresponding higher and lower strike to short and long? 2)If I am already in a credit spread….can I sell another short position, making that 2 shorts and 1 long? Or do I have to buy another long position to cover the short? Does that mean I am naked for one of the shorts? I appreciate any feedback. Cheers guys![/QUOTE] 1.) Different prices and symbols because they are sold on different exchanges. Your broker will try and get you the best price if you go with a broker experienced in options trading such as Options Xpress or our new favorite think or swim. 2.) yes you would be naked one of the shorts. As far as do you have to buy a long to cover depends on the strategy and if your broker has given you the OK to do so. Why do you want to sell another? Welcome to the boards."

Lightspeed said: "[QUOTE=drdan]1.) Different prices and symbols because they are sold on different exchanges. Your broker will try and get you the best price if you go with a broker experienced in options trading such as Options Xpress or our new favorite think or swim. 2.) yes you would be naked one of the shorts. As far as do you have to buy a long to cover depends on the strategy and if your broker has given you the OK to do so. Why do you want to sell another? Welcome to the boards.[/QUOTE] Hi Drdan, Thanks for the input. As far as my answer to your second reply, I don't want to be caught with an extra naked put, I asked just to clarify this point. To follow up on your first reply, if the different symbols indicate different exchanges, then do I just choose one with falls in the price I want to pay and then buy (or sell) the corresponding strike price? Or am I limited to a particular symbol depending on the broker I use? Thanks in advance! Cheers!"