Re: Options Strategy

[TRaffertu@xxxxxxx]

In a message dated 98-01-31 10:48:10 EST, you write:

<< These are two totally different option strategies.  A straddle, by
 definition requires that the trader take the same strike strike price for
 the call and put;  whereas a strangle means you're using different strikes.
>>

           Hi George,

           You are right, I did mix the termonologys, however the two
stratagies are very, very similar.  In fact one common way to try to salvage a
strangle that has gone against you is to convert it to a straddle when the
stock reaches the break even point.  I think we where both telling Peter the
same thing:  that wrights of this type have limited profit potential (the
premium received) with high risk.  And, while they can be profitable require
caution, knowledge, and good capitalization.

             Thanks for keeping me on the straight and narrow termonology
wise.
                                              Good luck and good trading,
                                                         Ray Raffurty