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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 (835)	2/14/2002 10:30:17 PM
From: Dr. Stoxx	Respond to of 4058

Yes, I think you are right. Tricky thing, these options. Still prefer the straight stock/holder. But will keep plugging away as long as they are profitable. Keep us posted on your straddles. TC

To: SusieQ1065 who wrote (835)	2/14/2002 11:17:44 PM
From: mishedlo	Read Replies (3) \| Respond to of 4058

SuzieQ I think we need to think in terms of bear spreads. Buying near the money on in the money puts and selling puts further out. This limits the reward but limits the cost as well. For example buy the Mar 39 QQQ puts and sell the Mar 36 QQQ puts. At 36 you have a near double, which is better that you would achieve on buying straight puts. Of course you give up anything below 36 but is a near double good enough? The huge advantage is you do not need as big a move to have a winner, and the decay on the further out option should be more rapid. M