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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: WebDrone who wrote (8284)4/22/1998 4:33:00 PM
From: SJS  Read Replies (1) of 42804
 
Richard,

Deciding the underlying movement on the stock before building a strategy for options is one of the hardest things to do. From a straddle perspective, if you BUY a straddle (a put at 30, and a call at 30, for instance) you expect the stock to move big one way or another but are not sure which.

If you sell a straddle(sell a put at 30, and sell a call at 30) then you expect the stock to trade INSIDE the range of 30 - (put premium+call premium) to 30 + (put premium+call premium).

There are tons of other strategies, that may be appropriate, but you asked about straddles...
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