|
PureBytes Links
Trading Reference Links
|
Re selling SP futures straddle. Just checked out the option premiums and
could not believe how small they were. I guess I expected something
comparable to Oct 1998 when this strategy was wonderful for me. I should
have checked before I wrote. Sorry.
=======================================================
Joe Duffy wrote:
"Since were only talking about opinions here, I'll throw my thoughts in. It
"feels" to me very, very much like October 1998 at the bottom in both SP and
Nasdaq. I think the low is in personally. I am considering a strategy of
selling puts on the SP futures with a strike below the recent low, and
simulataneously selling calls on the SP futures with a strike around the
recent highs or a bit lower. I think that we are likely to see trade
increasingly less volatile and more in a trading range for the next few
weeks. If we did break lower I would cover the short puts and hopefully
cover off most of that loss by staying short the calls. But really, I think
it stays in the range, so that I will profit on both sides of the equation.
When implieds are this high, it is the time to do this type of strategy"
|