Replies to post #766 on The Options Box (OBOX)

[bbgold]

UBS Jan 04 Leaps update:
Seems as though I am always a week late in updating this <GG>. Currently the UBS Jan 04 $50 Puts are trading at 1.75 x 1.95 and the Calls at 7.60 x 7.90 for a combined total near 9.50. Using last weeks Short Puts signal from the MKTSS board on the DJX to exit the Calls would have locked in a sizeable profit. Whenever establishing a Straddle type trade it still seems appropriate to exit one side of the trade whenever the markets reach an extreme. This can be seen in the swing in prices from the Puts to the Calls since the last post. Not sure if we are back to that extreme to the upside yet, maybe.
Jan 05 $40 Puts at 1.85 x 2.20 Jan 05 $60 Calls at 1.90 x 2.05 Total cost 7.45 in last post, now $4. The wider straddle has lost a lot of premium on the Puts but has only gained slightly on the Calls. Too far OTM?