Shocked that companies and mutual funds would invest OPM (Other People's Money) in high-risk investments, the Shocked Investor was originally on a mission to find out if our money ended up in these dubious instruments. This blog now also discusses other financial topics, such as straddles, options, gold, natural gas, agri/food stocks, and the collapse of the US Dollar.
Thursday, January 22, 2009
Earnings Season: Straddles for the Next Two days
With earnings season just started and big surprises expected daily, straddles and strangles can be quite profitable. An example was Nokia today. A 12-13 strangle bought yesterday, returned +22% profit this morning.
(please click on image to enlarge)
The table below shows some upcoming straddles for the next 2 days:
The move required is the maximum percentage that the underlying stock should move to compensate for the cost of both the call and the put.
No comments:
Post a Comment