[Jimbo]

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You're relying on the pile on effect that happens when price starts moving in a direction. You have to get in early enough to see this, which means you have to have the foresight that no one else has about the momentum of a move.

[/ QUOTE ]

Not really, during the recent volatile market I have been using both straddles and strangles on stocks with a pretty high beta. I am also very familiar with the normal trading ranges and patterns of these few stocks. Using today as an example: GS opened much higher than the prior close, I immediately bought 240 puts (already had some 230 puts from late yesterday) The price dropped pretty quickly so I then bought 240 calls. By the end of the day I sold all my 240 puts and the profit covered the complete cost of my remaining 230 puts and 240 calls. These are all Nov options so I have only two more days for GS to either get near or higher than 240 or near or lower to 230. Another volatile today or tomorrow and I should be able to profit on both sides of my remaining positions. The last 30 minutes of today was pure heavan. [img]/images/graemlins/smile.gif[/img]


Jimbo