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Joe,
I don't follow.....
I guess your tradingrisk is a certain percentage of your trading capital ?
Why not sell more contracts if the premiums are small ?
Or is there another reason that small premiums can affect this stategy ?
Questions, questions...
Rgds.
Frans
At 11:11 20-10-00 -0400, you wrote:
>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"
>
>
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