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Strategies & Market Trends : Advanced Option Strategies

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To: Greg Higgins who wrote (1)1/27/1998 1:44:00 PM
From: R. Gordon  Read Replies (1) of 355
 
Greg,

I'm glad you are starting this thread. I've enjoyed your posts very much and on a few occasions needed you to break things down so that even I could understand you.

I have found a few occasions where cost of the put and call in the same month and strike price offer a slight advantage to the investor. These situations are rare, but they do occur. IE, Stock at 85, 85 strike, 85 call bid price 4, 85 put ask price 3.375. Entering this position - sell the CC and buy the put, gives me a slight edge. On retreats I may buy buy the call back and wait for it to go back up - still protected on the downside. I may also buy inexpensive calls and on rallys buy inexpensive puts. Buying the puts and calls at relative highs and lows according to TA suggest (which ain't perfect) I get better prices for on the protective positions than a butterfly.

Anyway, that's what I'm looking at these days.

Richard
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