Replies to post #743 on The Options Box (OBOX)

[bbgold]

Looking at Buying a Straddle
Yes, if the market is anticipated to move sideways then Selling a straddle would make money on both the Puts and the Calls that are Sold. Since I am only approved to Buy contracts then I was considering buying some OTM Puts and some OTM Calls. IF the market moves then one contract might make up for the other. The market trading sideways would equate to both positions losing though, the reason I have not traded it. If the contract prices can become more reasonable and reflect a limited trading range on the market then the straddle would work if the market makes a signicant movement in either direction. Trading sideways though and your money is straddling the toilet and ready to be flushed :^)

I need to look into an Options broker with lower margin requirements for naked options. If there is such a thing.
Thanks again for the help! :^)

Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!