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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: KFE who wrote (2009)	10/28/2000 3:44:31 PM
From: RoseCampion	Respond to of 2241

Seems like the strategy I mentioned might become even a better play. Ken: great article. Thanks. Of course (playing devil's advocate here) unlike the FOMC play you described, this rise in volatilities isn't tied to one a very short time period - it's broadly-based, reflecting more general uncertainty through the entire "pre-announcment period" (which starts 3 weeks before earnings? 4? 5?). So this wouldn't be a quick in/quick out play, but a slightly longer-term strategy. (If anything that lasts a period of weeks can be described as "longer term" ;). I also think the article is a little contradictory when it advocates that a good response to this new world order might be to be _buying_ straddles. If IVs are big, that straddle is going to be even more expensive, and the stock's going to have to move an even longer way to make it profitable. Your type of play seems much more canny given the dynamics (as long as you're willing to take the risk inherent in the short position and/or hedge adequately against it). cheers, -Rose-