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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe
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To: BDR who wrote (10)8/11/2001 12:11:56 AM
From: Mathemagician  Read Replies (2) of 1064
 
Figure 20-1 Shows the Profit or Loss at Expiration graph for a covered straddle write compared to covered call write and the downslope to the left is steeper for the straddle, meaning that losses mount faster as the price at expiration falls. I think this is what Roth was saying when he described the position as "more intense" than the stock.

Is that figure created using a covered straddle write on 100 shares and a CC write on 200 shares? That would be (almost) the apples to apples comparison.

M
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