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Strategies & Market Trends : straddles and strangles

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To: charlie mcgeehan who wrote (6)8/26/2004 3:32:28 PM
From: kaka  Read Replies (1) of 10
 
For the past many many months, I've been playing short straddles and strangles for Dell computer. The stock seems to magically close at or close to 35 each and every month. I don't look at volitility or IV:HV at all as alerts as when to sell the contracts. I just start with 32.5/37.5 strangles and straddles around 35 for the next few months out. If there is enough premium in further out month contracts, I start with 30/40 strangles. Profit take each side and add positions when market dictates, and tighten position to 35 short straddle. Its been working very well so far!!

cheers
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