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.
Strategies & Market Trends : The ultimate play:STRADDLES on earnings announcements.

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: shadowman who wrote (1)6/20/1996 10:50:00 AM
From: farouk a. hassieb   of 140
 
Dennis,
I generally buy the options to the nearest strike price. For ex, if Intc is at 72.5, I would pick up the 70puts and the 75calls. It also depends on my general bias(bull or bear) on the stock. If I felt earnings would be good, I would buy closer to or on the money calls and would pay more for them. But in this market I am maintaining a neutral position(buying calls and puts as close to an equal price as possible) because even if a company does meet or exceeds earnings, it will probably get hammered anyway(in other words its better to be safe than sorry) Volalitility is my best friend. I don't care where the stock goes, just as long as it does. I hope I answered your question. If not, ask more.

fh
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext