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


To: Greg Higgins who wrote (311)2/11/2000 11:10:00 PM
From: OX  Read Replies (2) | Respond to of 355
 
>>>I'm not convinced that the best strategy is to necessarily use high beta stocks. The best pop is a surprise on a low
beta stock which then inflates radically.<<<

for long straddles, i would think on high beta stocks one would tend to get killed by the volatility 'implosion' after 'the event' (e.g., earnings).

so on KEA and DELL, I'll guess that you did not hold either position over their respective earnings, but rather open+closed them completely before or after announcment.
can't tell w/ WCOM, but sounds like you bot before and closed after.



To: Greg Higgins who wrote (311)2/12/2000 12:41:00 AM
From: LPS5  Read Replies (1) | Respond to of 355
 
Greg,

Another good time for long (or short, I suppose) straddles is during the period before a particular index rebalancing period: S&P's, Russell 2000, et al.

LPS5