SI
SI
discoversearch

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 : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?


To: Gersh Avery who wrote (124)10/22/2004 2:44:55 PM
From: kaka  Respond to of 652
 
Hi Gersh,

A short strangle sells OTM calls and OTM puts for the same month.

When I placed the trade, QQQ was @ around 36.3. I sold to open the November 37 call, and sold to open the 35 put. I'm profitable if QQQ stays between 34.20 and 37.80 since I received .80 in premiums.

A short straddle is selling a put and call but at the same strike.

Hope this is helpful.

Cheers,
kaka