Hi mick, Cheers for that, I ll need to read up on this, I read the book a few years back. I ll take your word for it and read up on Le Papillon as its called in french .-)
Eric On Wed, Aug 10, 2011 at 2:59 PM, Mick Cooney <[email protected]> wrote: > 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)
