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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: the-phoenix who wrote (697)	11/27/2002 12:56:47 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 1064

What is the advantage over a straddle on either gold or the market? There is always the possibility of a decoupling of the typical inverse relationship. If you are lucky that works in your favor; if not you can get hurt. Seeing how in some other areas you seem to have taken over for me as having the worst luck with near misses and instant reversals just after you enter or hit a stop, which way do think that is going to work for you?<ggg> With the straddle the uncertainty is reduced. The only variables are the price movement you need to achieve profits at expiration, or fluctuations in volatility if you want out early. The only advantage I can think of to a put-put strategy is that long puts typically have less time premium than long calls, so you might enter a little cheaper. But that is because of interest rates that are so low now that I doubt this is of any real significance.