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Strategies & Market Trends : BEFRIEND THE TREND Short-term Options Trading Thread -- Ignore unavailable to you. Want to Upgrade?

To: SusieQ1065 who wrote (48)	1/27/2002 6:54:24 PM
From: TraderWithNoName	Respond to of 4058

AOL straddle analysis : home.attbi.com

To: SusieQ1065 who wrote (48)	1/27/2002 8:44:59 PM
From: Dr. Stoxx	Read Replies (1) \| Respond to of 4058

Hi Susie, Good to see you here! Please feel free to share whatever you come across in your readings (as you have done already) and experimentation with this sort of trading. I'll be watching the AOL trade to see how it pans out. Makes sense to me. I don't plan on putting on any hybrid trades until I do more research. For now I am working with the assumption that the same stock trading skills I've developed can be translated into profitable options trades. Unknown variables for me, however, are just how fast time value deteriorates; whether and how fast delta changes over time; and the whole liquidity problem (can one get stuck in a marketless contract?). Any insights from you -- or anyone else reading this -- would be greatly appreciated. As I said in the header, this is an experimentation with risk capital I'm prepared to lose. All the best, TC.

To: SusieQ1065 who wrote (48)	2/2/2002 6:37:15 PM
From: Hans	Read Replies (2) \| Respond to of 4058

Thats a nice track record on the option straddles. I've done best with selling puts (or calls), as most options expire worthless. I've always assumed that most straddles would waste away before there was any profit. How do you pick the stock and strike price? I assume the exp date is always 1 or 2 months out. Hmm... what does McMillan say on closing a straddle? It was something non-intuitive, about locking in the profit. It's been years and I don't recall. -hans