Comment of the Day
This regular feature has been in hibernation for a while. I am bringing it back today because of a comment I just got that reminds me how great blog comments are. This one was left on my Buying YHOO post but is probably in reaction to my Sold YHOO today post:
Options on Yahoo have been priced at a volatility not seen since
2003 anticipating as big a move in the stock (22%), either way, as much
as last quarter. This suggests more of a move to the downside.
Investors, depending on their opinion on the stock, can buy calls or
sell straddles and strangles to increase their alpha or sell the stock
and sell the straddles and stranglesPosted by: E Dorsey
Now I am not that sophisticated of an investor, but that is pretty good information and strategy as far as I can tell.