A put and a call at the same strike and expiry is called a straddle, and while it is a volatility play, it is not perfect because the overall position stops being delta-neutral as soon as the stock moves away from the strike price.
In non-technical terms, it means the value of the position will also depend on the stock price (which is not what you want). If you want to do something like that, a butterfly is usually better, which is where you buy/sell a call at strike (X - a) and (X + a) and sell 2 calls at strike X. That being said, for customer accounts, commissions are usually quite high for options trading, so it is better to be careful if this is something you want to get into. -- Mick Cooney [email protected] _______________________________________________ Leedslist mailing list Info and options: http://mailman-new.greennet.org.uk/mailman/listinfo/leedslist To unsubscribe, email [email protected] MARCHING ON TOGETHER (There's it)
