do you guys think it'll break the 52 wk low (36.55)?
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Q's Straddle before FOMC
- Thread starter 4re
- Start date
Quote from Eliot Hosewater:
Yesterday I put in an order for a long ATM straddle on the OEX, and a short strangle at +/-5, just to see what happens due to the FOMC meeting. I'm also thinking of using the Turtle strategy of scaling out of the losing sides and scaling in on the winning sides.
All in TOS's PaperMoney of course.
If you have been listening to TOS, you'd not trade OEX because the pricing.
Quote from forex-forex:
Original poster is interested in a 1-2 day move, not weeks. And weeks can really play havoc on your option strangle.
I am the original poster. I guess I didn't make it clear though. I am using July options so I have a couple of weeks to make it work. I bought the put side of the trade when price was above 38 while they were cheaper and bought the call side today. Puts are in the money right now. Calls are kind of a hedge at this point. Will hold and see.
Quote from 4re:
I am the original poster. I guess I didn't make it clear though. I am using July options so I have a couple of weeks to make it work. I bought the put side of the trade when price was above 38 while they were cheaper and bought the call side today. Puts are in the money right now. Calls are kind of a hedge at this point. Will hold and see.
Essentially you legged into it which works just fine but its a directional play, rather than pure vol play. If you are right on direction and timing it will work fine.