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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: kaka who wrote (10)	7/9/2004 2:50:02 PM
From: Gersh Avery	Respond to of 652

The At the money or slightly In the money both calls and puts that I will sell later.

To: kaka who wrote (10)	7/9/2004 3:06:35 PM
From: Gersh Avery	Respond to of 652

I'm going to post my PM reply to you here in public also: This works best in a range bound market. The outer brackets are just starting points. When these are first established, the market will be near the center of this bracket. If the market moves down then lower strike price calls will become available at the .05 price. If the market moves up, then higher strike price calls will become available at the .05 price. If the market moves $2 in either direction, then the width of the bracket has decreased from $10 to $8. Either time decay or market movement will make it available to decrease the size of the bracket to $4 or less. That then becomes the optimal time to sell center straddles or overlapping strangles. Edit . BTW I should note that at the moment, I'm exposed because of a lack of the 30 puts ..