Put/Call spreads

[Dutch]

A hello from a newbee,

I'm from Holland and only recently I started trading options.
This is because my budget is not very big.

Now I have a question about a type of trade I would like to do:
Lets say the Amsterdan exchange index is around 458 points.
This is all about options that have a one week "life span"(each week a new series is introduced and expires)

I make a Put credit spread:
Sell Put 450 at 1.40
Buy Put 447.50 at 0.80
So result 0.60

I also make a Call credit spread:
Sell Call 450 at 1.05
Buy Put 462.50 at 0.50
So result 0.45 = total 1.05 (costs 4*0.03)= 0.12 Total net =0.93

As far as I can figure out the max risk upside or downside is 2.50

Would it be a good idea?
Or should I rather go and shoot myself in the head, mind you, jumping out of the window is no option since I live on the ground floor.

OK I'm ready you can throw anything you like at me.

Greetz
Dutch

[wallstreetsedge]

Sell Put 450 at 1.40
Buy Put 447.50 at 0.80
result 0.60 credit
you assume stock will go up...
if stock goes up you make 0.60 profit
if stock goes down, theyre basically going to cancel out and you lose 2.50

Sell Call 450 at 1.05
Buy Put 462.50 at 0.50
0.45 credit
seems you believe the stock will be neutral or go down.. max loss is unlimited because the stock can go to the moon
max gain would be the 462.45

if you think theres going to be a huge swing but dont know which direction why not just buy both puts and calls

if its a volatile stock and you believe it will go up.. i would say buy a call
if its not a volatile stock and you think it will go up.. i would sell a put

if its a volatile stock and you believe it will go down.. i would say buy a put
if its not a volatile stock and you think it will go down.. i would sell a call

if youre neutral/bull.. i would say buy in the money calls and sell at the money or out the money calls

if youre neutral/bear.. i would say buy in the money puts and sell at the money or out the money puts

[WhatsUp]

Okay, I am going to assume that you meant "Buy Call 452.5 at 0.50"

Put spread:
<447.5 -> 2.50 -> loss of 1.90
447.5-449.4 -> 0.6-2.5 -> loss of 0-1.90
449.4-450 -> 0-0.6 -> gain of 0-0.6
>450 -> 0 -> gain of 0.6

Call spread
<450 -> 0 -> gain of 0.45
450-450.45 -> 0-0.45 -> gain of 0-0.45
450.45-452.5 -> 0.45-2.5 -> loss of 0-2.05
>452.5 -> 2.5 -> loss of 2.05


After commisions:

Best case scenario:
450: gain of 0.93

Profit region:
449.07-450.93

Maximum net loss:
<447.5: 1.57
>452.5: 1.57

I'd like to point out that you have a very narrow profit window. If the index is at 458, then you are betting that at options expiration it will have moved down exactly 1.55% to 1.95%. I don't know many people that could predict where a stock index would be in the next day with an +/-0.2% accuracy, much less several days away.

This seems like a risky strategy to me. You may want to consider doing some more paper trades just to see how they turn out before risking more real money.