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Strategies & Market Trends : Advanced Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (276)	1/26/2000 5:49:00 PM
From: OX	Read Replies (1) \| Respond to of 355

I'm more inclined to do a variation of 1 (or 3--leave the position alone) and not 2.** regarding (1)... I'm not sure if you can actually get sufficient prems w/ strikes at 1SD out from the middle of the band (where I would hope the current price is also). you might want to structure the trade so that your profit zone is around the 1SD bands. then, when the underlying ventures outside your profit zone, you hedge (either before or after depending on your thinking at the time). the reason I don't like (2) is because I don't think you can trade w/ regard to ONLY the underlying TA (MA + BB), or ONLY the characteristics of your position (no matter how 'optimal' you were able to structure entry into your trade, it won't be perfect). IMO you need to take both into acct appropriately. does that make sense? --- **you're making my head hurt w/ all these variations :-)