The "Flipper" strategy

Discussion in 'Technical Analysis' started by Turok, Feb 2, 2004.

  1. Turok


    >Thinking through the example, I now see why the
    >spread would need the 2x factor, and I assume that
    >your "cost of delta" is the difference between the
    >upper band and lower band (not distance to opening
    >price). Thanks for the explanation.

    On a "flip" transaction the above is correct. Of course the initial transaction only costs one half of the delta plus 1x spread.

    #51     Feb 4, 2004