Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : E-Mini Pit -- Ignore unavailable to you. Want to Upgrade?

To: the-phoenix who wrote (7844)	10/24/2002 11:37:55 AM
From: Jack of All Trades	Read Replies (2) \| Respond to of 11288

If you think we are in the middle why not sell, straddling should be done at a high/low/or TP?

To: the-phoenix who wrote (7844)	10/24/2002 12:02:12 PM
From: sandeep	Read Replies (1) \| Respond to of 11288

The risk reward for buying a straddle is very low imho. You can sell dec call and put for 85 and pocket almost 8.5. That is some serious dough that you can try to keep by trading the underlying imho. That is a much better risk-reward than paying the 8.5 for getting 1.5 in the extreme circumstances.

To: the-phoenix who wrote (7844)	10/24/2002 10:38:17 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 11288

Dan Duchart (sp?) talked about this strategy here a while back: Sell NDX or QQQ straddles and hedge the trade with NQs to try and keep as much of the premium as possible. Yeah.. he even tried it a couple of times with ES and OEX options and got whipped to death on the overnight moves. Could have managed them better, but hindsight is always perfect. Still, there are times when the strategy would work well because the futures move far enough away from the strike price so you can just sit on the position while absorbing the eroding premium. That just doesn't seem to happen when he takes the trade. Murphy's law prevails.