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Ninja7

03/11/11 12:58 PM

#99 RE: lerogee #98

Hi lerogee. Thanks for the info on the earnings strangle. I had a couple questions about it...

How far out from expiration do you purchase the options?

The reason I ask has to do with my second question which is what do you do if the stock doesn't really move after earnings? Just exit anyway with whatever loss you have.

If you end up buying options very near expiration in this case, both sides of the strangle decrease substantially just from time decay.

Thanks