re: ncp straddle

Subject ncp straddle
Posted 10/01/03 16:35 - 101 reads
Posted by stelep7
Post #101 - start of thread

before close i wrote 10 ncp 1250 march calls for 95 and 10 1250 puts for 87.

premium margin is a whopping $18.2k
risk margin is only $3.4k
gotta love that.

IV's were 40 and 42. I doubt NCP will run past 1450 or fall past 1050, so this position should be fairly safe.

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update:

ncp 12.5 call 95 -10 -9500 72 -7200 2300
ncp 12.5 put 87 -10 -8700 94 -9400 -700
$1600

not a bad week