buy straddles on ES for end of week

Discussion in 'Options' started by scriabinop23, Apr 16, 2007.

  1. 1475 straddles are cheap. With earnings, will this thing just fizzle out at these highs?
  2. Not if the straddle is as cheap as you say. Of course, buying a straddle before earnings is a dangerous game. Once that announcement is out, that thing will deflate faster than a punctured balloon. You'd better pray for a massive move to pay off that premium BEFORE it all erodes.

  3. I am talking about ES 1475 index straddles. They expire in 4 days and cost about $600.00 per straddle. you need to be 12 pts from 1475 by Friday morning to justify these.

    I say its a potentially good play, since today we're up 14.25 pts alone. I bought some May 05 1475 puts today as well, since we're in double top land and IVs are so low.