What do you call this strategy?

Discussion in 'Options' started by falcon, Nov 1, 2011.

  1. falcon


    long stock (100)
    -ATM calls (10)
    -OTM calls (10)
    -OTM puts (10)
  2. It's two positions, a Cover Call and Short Strangle. I guess you could put lipstick on the pig and come up with some exotic name.
  3. falcon


    covered straddle comes to mind but with the extra call, thought maybe somekind of ratio.
  4. spindr0


    It has the structure of an unbalanced strangle but you can call it anything that you want :)

    It would be balanced with about 600 shares. Any particular reason that you chose 100 versus balanced or versus 1,000 shares?
  5. falcon


    Thanks spin. That makes sense.

    A trader I met uses this as his primary strategy, tried to remmember the mechanics of it but this is all I could remmember.