Tuesday, November 11, 2008
On Paper, I'm Deadly
That OSX straddle is *16.90 bid 17.90 offered* right now at 10:48 am.
Let's pay the offer and cover our paper trade of selling the OSX November 135 straddle for 35.50 on October 17th.
Here's the math for Morons:
35.50 - 17.90 = 17.60
So for each little straddle shorted, a trader would have netted $1,760 (minus commissions) in just four weeks time.
Note that on small lots, one can easily get filled *mid-market* and make a tad more moolah.