Gersh's Option trades Message Board

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Strategies & Market Trends : Gersh's Option trades

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To: Allen Furlan who wrote (32)	7/31/2004 8:54:02 AM
From: Gersh Avery	of 652

>All of the adjustments just increase your costs and the market may not cooperate.< Market fluctuations allow my "brackets" to tighten faster. OK note this .. I'm running two different patterns at the same time here. One is the collapsing bracket. The other is the sell of a straddle. The straddle becomes disastrous if the market moves outside of a range. The collapsing bracket has to much overhead by itself. The two complement each other. The collapsing bracket is set with a width of 8 contracts. The first straddle is set at a width of 4. The purpose of the center straddle is to partially fund the collapsing bracket. Once the collapsing bracket has contracted enough a final straddle 8 wide will be sold in the center. The final sell should require no additional covering cash. I've got to run it for a while to see how it goes. Your question about OptionXpress and debt covered by cash. Yes they do require the cover. Actually it's required to be covered by regulation.

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