Do a search on "gamma scalping" here on ET for info on the synthetic straddle you were refering to. People have claimed success with gamma scalping however, I've never had nor seen much profit with it. Probably just me...
Quote from exQQQQseme:
One of my favorite strategies, as I expressed often on the "Other Site" Boards is the combination of shorting the stock, buying calls, and occasionally selling puts. I have had little or no success generating any kind of discussion on this.
The other night on that Board, amidst all of the arguing, Maverick 74 and I were just starting to have a good discussion of the subject when they pulled the plug on him.
Hopefully, that could be continued here. No, I have not made "mooolions" doing this; however, I have had consistent success, albeit modestly.
4Q (I love that abbreviation.)
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