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Strategies & Market Trends : A Study of Covered Strangle in a Rather Neutral Market -- Ignore unavailable to you. Want to Upgrade?


To: PAL who wrote (14)8/20/2001 3:25:00 AM
From: PAL  Respond to of 23
 
Since the options expired worthless, there is no open position. There is a temptation to immediately open a new position. But I think we do not have to be in the market all the time. Therefore, I am willing to wait until such time to sell puts/and or calls.



To: PAL who wrote (14)8/20/2001 11:14:38 AM
From: PAL  Read Replies (1) | Respond to of 23
 
On the one end of the spectrum we have $ 110,000 cash and keep it that way. The risk is practically zero in money market account and the maximum return is the interest earned.

On the other end of the spectrum is buy and hold:
Based on a price of $ 62.25, you have 1,767 shares of Qualcomm and a few dollars change. The risk is if qcom falls below 62.25, and the maximum profit is unlimited.