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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: rydad who wrote (2067)	8/17/2001 11:45:52 AM
From: PoetTrader	Read Replies (2) \| Respond to of 5205

rydad...do you mind sharing your strangle strategy?... Also I think I'm wandering into Obi Wan thread territory here, but wanted to ask anyone who could tell this dumbling, what's wrong with my thinking in the following scenario. NVDA is at 86 or so today. If I purchased underlying and sold a Sep85 call today I would get 8 (I would wait until the stock went back up to write that call actually -- but for arguments sake)...and then I sold a put at 85 I would bring in another 6.5 premium. If the stock goes up and I'm called away I've made 16% (in round numbers) if the stock goes below 85 it has to reach 70.5 for breakeven. Am I nuts? This seems like a nice play...unless of course the Nas drops to China, which it very well may. All feedback appreciated...Best of Luck this bewitching Friday. PoetTrader