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Strategies & Market Trends : Advanced Option Strategies

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To: jjs_ynot who wrote (263)1/25/2000 10:42:00 PM
From: OX  Read Replies (1) of 355
 
buy stock, write straddle...

hi Dave,

I recall Bittman covers this in his 'conservative' book on options for stock investors. (shhhh... don't tell taxman this is a conservative strategy :-)

I can't comment specifically on the characteristics of the stocks in the newsletter, but I would think this strategy is best for good stocks in a trading range to generate extra income. As a reformed CC-er and current NP writer, I approve of this strategy when done conservatively (meaning not overleveraging) on sound underlying. Kind of a NP trade on steroids.

wmchen was advocating a similar (yet more aggressive) straddle write on the 'selling puts' thread, but I only paid partial attention to it since I would rather keep my trades simple (meaning not too many legs).

---
is this 'volatility newsletter' the one from macmillan's that you mentioned on your 'spreads' thread earlier?

tx
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