SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : INTEL TRADER

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: smolejv@gmx.net who wrote (8424)5/25/2000 12:49:00 PM
From: John Harton  Read Replies (1) of 11051
 
Hello DJ Re: Straddles

>>Dont straddle in a clear trend, that's all.<<

If only it seemed so clear to me.<g> If the answer is
1) Don't straddle in a down trend
2) Don't straddle in an up trend
3) Don't straddle in a sideways channel(since both of your positions merely suffer time premium decay.)

Perhaps the answer is "Don't Straddle!" <ggg>

I was always under the impression that you straddle(if at all) in periods of high(and steeply directional) volatility.

My general bias is to always attempt to find bottoms since I trade in an IRA and can't short so must only play the downside(if I see it coming) through buying puts or selling covered calls(for expected short downturns).

What do you think we got here.. a pause in the down trend or a turning point?

Happy Trading
JH
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext