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Strategies & Market Trends : Help with OEX trading for Master's Thesis -- Ignore unavailable to you. Want to Upgrade?

To: James Lumley who wrote (4)	2/3/1999 12:48:00 AM
From: Kenneth Little	Respond to of 13

Hi James What if you sell a Call that is +6% above the OEX price and sell a Put that is -6% below the OEX price. If I understand you, what your saying is that if the price goes above the +6% or below the -6% you begin loosing money, and perhaps this is too risky for most investors. Regards Ken Little

To: James Lumley who wrote (4)	2/9/1999 9:09:00 PM
From: NateC	Read Replies (2) \| Respond to of 13

I can't think of a more dangerous financial activity than for the uninitiated (businesses with extra cash) to trade the OEX. It requires extensive experience and knowledge and should only be done on a full-time basis. And, do I need to say, you can't rely on your broker for the sort of help you need. James......having said the above.......can you amplify a bit on this. An article in investor's daily pointed out the relative safety of doing a quite wide short straddle....I believe it was, on DELL. Do you think the premiums are too expensive on the OEX options, or ??