Is this called a Straddle?
 

Hey I just did it but am not sure it is a straddle. Earlier today I bought some $100 calls on GRMN, now I bought $100 puts on GRMN. I got enough spread that I can cash out of both positions and cover all my transaction costs plus a small profit. I know this will deteriorate as I lose the time value but want to know if this is a true straddle or are they normally done at different strike prices?

Thanks,

Jimbo

Re: Is this called a Straddle?
 

Thats a straddle, different strike prices would be a strangle.

Re: Is this called a Straddle?
 

[ QUOTE ]
Thats a straddle, different strike prices would be a strangle.

[/ QUOTE ]

Aha, thanks very much.

Jimbo

Re: Is this called a Straddle?
 

[ QUOTE ]
Thats a straddle, different strike prices would be a strangle.

[/ QUOTE ]

A straddle is comprised of a put and a call with the same expiration date and both struck at the same price....usually at or near the money

Stephen [img]/images/graemlins/cool.gif[/img]

Re: Is this called a Straddle?
 

LOL, what in the hell are you guys babbling about?

Re: Is this called a Straddle?
 

[ QUOTE ]
[ QUOTE ]
Thats a straddle, different strike prices would be a strangle.

[/ QUOTE ]

A straddle is comprised of a put and a call with the same expiration date and both struck at the same price....usually at or near the money

Stephen [img]/images/graemlins/cool.gif[/img]

[/ QUOTE ]

Thanks to you too Stephen, the stock was within 10 cents of $100 (the strike prices) when I put on the straddle, but the options prices had enough differential to cover transaction costs + profit (and they still do as of this morning), appreciate the input.

Jimbo

Re: Is this called a Straddle?
 

GG Jimbo!

The last few days,with the volitilty so high,option premiums are waaaaay too expensive for me to BUY.

I have found better,more profitable opp's SELLING PUTS if I want to go long...or SELLING CALLS if I wanted to be short....esp. in some of the stock index funds
(QQQQ's ,SPY's,etc)

GL,
~stephen [img]/images/graemlins/cool.gif[/img]