Straddles that are ITM

Discussion in 'Options' started by falcon, Sep 28, 2011.

  1. spindr0

    spindr0

    The sum total of the deltas will be greater than 1.00

    Since both are ITM, that means that a move to either strike will lose money, assuming no passage of time (decay) or advantageous benefit from change in IV. Outside of either strike, it gets worse.

    Successful timing is the only way that you'll make money with this unless the UL is within the confines of average of strikes +/- the net premium received. All the adjustments in the world will not help you unless the UL cooperates.
     
    #11     Sep 28, 2011
  2. .....i have a question about this, but havent figured the question out yet...i am doing that dog with the bone thing that fv talks about...
     
    #12     Mar 13, 2012