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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (3675)	1/10/2005 6:10:25 AM
From: Walkingshadow	Respond to of 8752

Hi Reid, Straddles are not as easy as some options outfits would have you believe.... But, they can be nice for a stock that normally has a lot of volatility, but has settled into a tight trading range, with extremely contracted BBs. You know the stock has to break one way or another. You can also stack the deck in the direction you think the break is most likely to occur. You have to be careful with the options pricing, though. Sometimes the contracts get overpriced or the spreads get excessive because they know it is an obvious straddle. Anyhow, head-and-shoulders breakdown in oil is looking very unlikely now. Oil is rallying at the moment, and looks ready to test overhead at about $46. I think it will probably settle into a trading range between $41 and $46. futuresource.com Alternatively, it could resume a much more reasonable and orderly uptrend, and if it breaks overhead resistance, this would then be the most likely course. Most likely that is what OPEC aims to accomplish. T