Wednesday, October 1, 2008

Straddles are a Great Way to Play the Bailout Vote

Earlier this week an IWM straddle placed before the failed bailout vote returned a profit of 40%.

IWM is a great instrument for options because the bid-ask spread is usually only one or 2 pennies, thus requiring the minimal move to profit required. While we wait for the next vote, I have a placed a new 67-68 straddle today.

Please see for other possibilities.

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