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To: Stoctrash who wrote (31267)	3/21/1998 2:19:00 AM
From: Stoctrash	Read Replies (2) \| Respond to of 50808

Strangle Me : numa.com SELL STRANGLE Strategy View The investor thinks that the market will not be volatile within a broadish band. Strategy Implementation Put option is sold with a strike price of a and a call option is sold with the higher strike price b Upside Potential Limited to the two premiums received. Breakeven Point at Expiry Lower point (c) will be the lower strike minus the two premiums received, the upper point (d) will be the higher strike plus the two premiums recieved. Downside Risk Unlimited - should the market fall or rise greatly. [If the investor likes the strategy, but not the downside risk, a long butterfly might be interesting]. Margin Always required Comment If the market does little then the value of the position will benefit as the short positions gain when the option time value falls.