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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: Tom K. who wrote (816)	1/8/2000 11:16:00 PM
From: tyc:>	Read Replies (2) \| Respond to of 1235

I have been having fun selling straddles on options that have a high implied volatility. Here is my question Any short-option position has a "present value";... the amount it would cost to close out the position. It also has a "profit profile"; that is how much profit on its "present value" if the position is held to the expiry date of the options; the upside and downside break-even (i.e compared to PV). Would you agree that if the "profit profile" extends throughout the range of current Bol. Bands (2 std devs), the option position probably has an attractive profit profile ? And if the profit profile does not cover the entire range of the BB's, the position probably needs adjusting ?