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.

SI - Site Forums : Silicon Investor - Welcome New SI Members! -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (22202)	3/2/2005 5:53:48 PM
From: SI Bob	Read Replies (2) \| Respond to of 32911

Actually, the most money I've ever made from it in a single trade was a short. I've made a little here and there going long, had every call I've ever bought expire worthless (which I'm sure is the fate of the Apr7.5's and Jul7.5's I've got now), and have slowly been bleeding my way down to a relatively small position in it. It's busted through every conceivable support level and I can't imagine what could possibly salvage it now. Refresh my memory. What's a strangle? I had noticed yesterday that both the $5.00 March calls and $7.50 March puts had zero volatility premium in them. They were priced for the stock to close at $5.50 on expiration day. As if I were looking at the expiration-day prices. Was scratching my head trying to figure out how I could profit from my belief that it would end up at least 50 cents above or 50 cents below that price ($5.50) but not end up right at that price. Basically I was trying to figure out how I could profitably bet the coin would be heads or tails while the market seemed to be betting the coin would land on its edge.