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Politics : Idea Of The Day

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To: HG who wrote (24178)3/10/1999 10:33:00 AM
From: Michael Rich  Read Replies (2) of 50167
 
Short straddle = short put and call @ same strike close to the current
price. For example, if one shorts Mar190c and Mar190p yesterday at
the close, one can take in about $40 prem for 1 call and 1 put.
The straddle is covered if one also owns the stock, so the upside
is protected. The down side risk is one is willing to own the
stock at 190 - 40 = 150.
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