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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Hepps who wrote (4625)	11/26/2006 3:19:42 PM
From: harmonyss	Read Replies (2) of 5205

Don't think you are accurately describing what you are doing. What is it? "selling against cash" or a "long position" ...you mention both? Correct me if I'm wrong but I thought a strangle requires a volatile price move. Earnings surprises, Phase 3 results... maybe FOMC decisions. Strangles cost less (than straddles) because they are purchased at least one maybe two strikes out of the money however this lessens the profitability. They require uncertainty in the market, not bull nor bear. Covered strangles is a term I don't think I've heard before? Selling both P and C against cash is very risky... your exposure is endless, you must have cahones to spare! Now I have a headache, Harmo

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