Re: [RT] Straddle SPX DE?

["Dom Perrino" <domenick@xxxxxxxxxxxx>]

If you are are beginner listen to Ira's 
advise.
Dom
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  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  Dom 
  Perrino 
  To: <A 
  href="mailto:realtraders@xxxxxxxxxxx"; 
  title=realtraders@xxxxxxxxxxx>realtraders@xxxxxxxxxxx 
  Sent: Sunday, October 29, 2000 10:40 
  PM
  Subject: Re: [RT] Straddle SPX DE?
  
  If you BUY a straddle(a put option and call 
  option on the same instrument and same strike price) your cost will be the 
  total of the put and call option cost e.g.strike price is 100 . cost of put 
  and call is $ 6.00  you will start being profitable if instrument goes 
  above 106 (call) and $ 94.00 (put). You need volatility otherwise you will not 
  be making money if the instrument you pick has a low volatility.
  On the other hand if you SELL a straddle you sell 
  (write) the call and put and pocket the premium, in that case you want to pick 
  an instrument that has a low  volatility so that there is little movement 
  in the instrument and you get to keep the premiums.This is a basic simple 
  example that i hope will be of some help.
  <FONT face=Arial 
  size=2>Dom                                                                             
  ----- Original Message ----- 
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    <DIV 
    style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
    John Corrion 
    
    To: <A 
    href="mailto:realtraders@xxxxxxxxxxx"; 
    title=realtraders@xxxxxxxxxxx>realtraders@xxxxxxxxxxx 
    Sent: Sunday, October 29, 2000 9:45 
    PM
    Subject: [RT] Straddle SPX DE?
    Hi Guys, 
    Are any of you out there experienced with straddles and can possibly 
    educate me? I was looking to do a straddle for the DE SPX and have been told 
    that I should be buying volatility but really don't know and don't fully 
    understand the option software.  Any guidance? 
    Thanks, 
    John To unsubscribe from this group, send an email 
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