NEUTRAL TRADING STRATEGIES Message Board

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Strategies & Market Trends : NEUTRAL TRADING STRATEGIES

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To: Lance Vainik who wrote (5)	10/3/1996 12:37:00 PM
From: Ralf Toumi	of 18

I understand he sells 1 month expiry. I am not sure if this is really the best way. Time decay is obviously good, but from the way the fund is run they do make money by churning it i.e. buying and selling frequently. When you say "get killed", I suppose statistically you will have to get hit eventually. The question is how much damage limitation can you do ? I would also like to know his signal for covering (but he wouldn't say). It is plausible that he sells 3/4 strikes out and covers when the underlying is within 1 or 2 strikes . Or something like that. Tricky job, and requires full time attention. have you got any decent strategies ?

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