I’ll give a specific hypothetical example:
If I were to BUY a 2050-2090 Daily Spread, and hedged it by SELLING a 2050-2060 Intraday Spread (assuming of course this spread is available), is this something that could work? I’m thinking with identical floors, the risk to the downside is reduced as the SOLD spread will gain value as the BOUGHT spread loses value (and vice-versa). And as far as upside potential, I can only lose up to 2060 on the SOLD spread, but can make up to 2090 on the BOUGHT spread. Darrell, or anyone else, I’d love your feedback on this. Thanks