BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. Message Board

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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.

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To: Chris Stovin who wrote (19070)	4/28/1997 11:17:00 PM
From: Haq0r	of 28369

A straddle is when you buy a call and a put with the same expiration and strike for a particular stock. You lose money if the stock stays within a range close to the current price. You make money if the stock goes past this range in either direction, and into the extremes. The volatility on Bre-x is way up there, but that doesn't necessarily mean you will make money on a straddle because this will be reflected in the price of the derivative already. Haq0r

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