#1
|
|||
|
|||
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 |
#2
|
|||
|
|||
Re: Is this called a Straddle?
Thats a straddle, different strike prices would be a strangle.
|
#3
|
|||
|
|||
Re: Is this called a Straddle?
[ QUOTE ]
Thats a straddle, different strike prices would be a strangle. [/ QUOTE ] Aha, thanks very much. Jimbo |
#4
|
|||
|
|||
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] |
#5
|
|||
|
|||
Re: Is this called a Straddle?
LOL, what in the hell are you guys babbling about?
|
#6
|
|||
|
|||
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 |
#7
|
|||
|
|||
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] |
|
|