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.

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