Traders Laboratory - View Single Post - Why can't you just....
View Single Post
  #1 (permalink)  
Old 09-24-2007, 01:23 AM
Reaver Reaver is offline
Reaver has no status.

Trader Specs
 
Join Date: Nov 2006
Location: FL
Posts: 922
Thanks: 0
Thanked 2 Times in 2 Posts
Send a message via AIM to Reaver Send a message via MSN to Reaver Send a message via Yahoo to Reaver
Why can't you just....

This may be a silly question...but since I don't know anything about options really...

Why can't you just buy a put and a call and then let the loser expire and exercise the winner?

I know it wouldn't always be that simple due to fluctuation in price...but I was just curious, as I imagine the probability would be on your side that a trend will end up going in one direction or another enough to justify the losses you'd take in a balancing market....

Thanks.

Reply With Quote