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Strategies & Market Trends : Gersh's Option trades

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To: Gersh Avery who wrote (8)7/9/2004 1:18:28 PM
From: KB   of 652
 
Do you always ratio the bracket longs 2:1 to the credit spreads? Or is this the opening position and then you sell additional straddles within the bracket range and the bracket longs are the covering options? If so, do you always keep a minimum number of bracket longs for protection? This is where I've never quite gotten it right - I like having the open longs to protect against a major move, but the combo of being so far OTM and near expiration greatly reduces the protection as op-ex approaches.

KB
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