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Strategies & Market Trends : Help with OEX trading for Master's Thesis
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To: David Penfield who wrote (5)2/8/1999 9:42:00 PM
From: NateC   of 13
 
So far I have been analyzing the monthly movement range of the OEX to see if
a put call strangle at the +-6% range would generate cash flow on a
consistent basis. I have finished my analysis yet so I do not know if that is a
viable concept yet.

I have started doing the same sort of analysis and think that OEX options in general
are overpriced, with the at the call strikes the most overpriced in dollar terms. I
think selling a straddle every month (and maybe buying way out of the money
strikes to limit losses on big moves) would generate the most income. I think Don
Fishback's (sp.) ODDS system does something similar to this.
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Isn't that what his proposal is.......to sell the straddle every month...He'll be in the money in a 12% range +or- six each month....and will usually be OK....If he gets close to getting stopped in any one month...he can bail out for that month. Does this make any sense?
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