A Study of Covered Strangle in a Rather Neutral Market Message Board

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.

Strategies & Market Trends : A Study of Covered Strangle in a Rather Neutral Market

QCOM 168.52

-1.0%

9:30 AM EDT

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext

To: PAL who wrote (22)	8/30/2001 1:51:41 PM
From: PAL	of 23

This is a risky move. First we do not know where the market is heading, and second we are selling put before selling the call, which means that the downside protection is less (compare that if we have sold the call first). Nevertheless, I am in the camp where I think the market is moving sideways plus minus 8% of nasdaq 2000, and now we are at the lower range of nasdaq. Later I will outline the risk level with yesterday's move. Nasdaq is now 10% below 2,000 which is outside the range of 7 to 8 % I am comfortable with. The market looks like moving lower from the range bound neutral environment. Be prepared to take some losses to avoid large ones. If the market does not find a support right here, then abandon the strategy for rather neutral market. But don't just jump in immediately into another strategy. Don't need to be in the market all the time. aaomm is at $11.30, thus I am $1.10 under water.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext