"Exiting Call Leg of Straddle"

uexkuell · #1 04-09-2009, 11:18 AM

What does it mean to "exit the call leg of a straddle"?

Am I right that this means just keeping the puts?

If you do that you change your mind from expecting a big move in any direction to betting that the underlying will be loosing ground?

thinkingfield · #2 06-02-2009, 08:49 PM

this is correct. the 'leg' of any position is just a single part of the trade. so in this case, it is selling the calls. this will leave you with the puts only so this position will now be bearish.

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