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To: edamo who wrote (30192)9/27/1999 12:08:00 PM
From: taxman  Read Replies (2) | Respond to of 74651
 
"both bullish"

did you mean 'one is bullish and one is bearish' or am i not understanding your post?

regards



To: edamo who wrote (30192)9/27/1999 1:13:00 PM
From: codawg  Read Replies (1) | Respond to of 74651
 
Sorry, edamo, but that is not correct. When volatility is high, and one expects volatility to go down, then one very likely play is called a straddle. It is an equity neutral position where you sell equal numbers of out of the money calls AND puts to capture the premium.

I don't mind you asking questions, but please don't lecture me on the reason to open a position. Unusually high volatility is a terrific reason to open a position. There can be lots of reasons to sell or buy a put or call. The ones you mentioned are only the most common.