24 January 2007

More Strangles

So we'll say we played the Yahoo (YHOO:Nasdaq) Feb. $27.50 strangle 10 times for $2500 ($1100 for the calls and $1400 for the puts) into the earnings...to simplify we'll close the position at the open and see what we get...

calls opened @ $1.45
puts @ $.55...so $2000 and another quick 20% loss...no max outs here...