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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?


To: amoezzi who wrote (4660)10/16/2010 4:19:41 PM
From: wilywilly  Respond to of 5891
 
Buy a straddle - equal # of calls & puts with the same strike. If AAPL pops big on earnings one side will lose all its premium, but the other will go to the moon. You'll probably find that AAPL options are very expensive right now because of the implied volatility (pending earnings), so you'll need a huge move to make money. I'm sure that a long straddle on GOOG last week would have paid off handsomely.



To: amoezzi who wrote (4660)10/16/2010 4:47:58 PM
From: dealmakr   Read Replies (3) | Respond to of 5891
 
an AAPL straddle or a srangle will cost you a pretty penny to put on with close strike prices to where the stock closed on Friday even on the weekly series using the 310-320 stike areas with the high vol on the options prior to earnings.

Not for the faint hearted.

dealmakr