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Technology Stocks : Adobe (adbe) opinions -- Ignore unavailable to you. Want to Upgrade?


To: AlanH who wrote (2329)3/31/1998 10:19:00 PM
From: rocketman  Respond to of 3111
 
Strangle that Butterfly!

Howdy Alan. Refresh my memory, please. What's the difference between a short straddle and a long butterfly? I know the profit/loss curve looks very similar except for the unlimited potential loss for a short straddle. (I actually have a long strangle on Adobe right now that's not working out too well.) Be advised I'm not currently authorized for (nor am I really interested in) selling anything but covered calls. But with knowledge comes change! Thanks in advance.

rocketman (doing a Challenger with this Adobe trade!)



To: AlanH who wrote (2329)4/1/1998 5:12:00 AM
From: dale sicher  Read Replies (1) | Respond to of 3111
 
I just read up on your butterfly spreads. Wow, do those look complicated. I may be a rocket scientist, but I want no part of those! Buying/selling four calls or puts with three different strike prices, plus all those commissions...just to make a limited potential profit. Thanks for the suggestion, Alan, but I think I'll leave the butterflies to those with a little more brains and alot more money!

rocketman