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Strategies & Market Trends : Tech Stock Options

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To: MonsieurGonzo who wrote (33481)1/18/1998 1:03:00 AM
From: ViperChick Secret Agent 006.9  Read Replies (2) of 58727
 
The man with no name

If you do a long strangle ...theortically you will make money with the swings......THE PREMIUM IS THE PROBLEM....

for instance...on Kevins latest OEX trade...if the movement had been the same day he got them without the intervening drop...I have no doubt he would have made good money on his calls. But there was the drop...and so they messed with the premium

So they same thing will happen on the strangle.

You buy the call and the put at the same time ( of course you can try to leg it) if the market goes down..you make money on the put...they strip you on the call...the market goes back up the next day...to right where you bought the call at....I bet it wont have the same value. So now you have to go up just to get the same value. However with enough of a swing it would probably work.

The concept is good...the problem is "the boys" eating their lunch on my premium dollars. Best way is to short....but for me as a little guy I have to do the long strangle.

Of course I havent watched the futures options or the mini 500 options so I dont know what is going on there.

Anyone do the futures options or the mini S&P 500? or have tracked it?

and if you are talking about doing the DJX options....man it takes MOVEMENT to make any kind of money there....and that is probably why they do the short strangle on them
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