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Option Idea of The Week
Let's again look at a few of the straddle ideas that appeared on ChartBender's Real-time IV Report that was distributed Thursday of last week. Explore which ideas would have been good to research more thoroughly. Examine how high or low implied volatility has affected the trades. For example, has high implied volatility been foretelling of significant moves in the underlying?
The list below is not a list of recommendations, nor is it a solicitation to buy or sell any security.
Some of these ideas indicate expensive trades, while others indicate relatively cheap trades. Some traders might construe an expensive trade to be a potential selling opportunity worthy of additional research. A cheap trade might be considered to be a buying opportunity, by some, worthy of additional research.
Straddles that were cheap on a relative basis:
ENER Mar 2008-25 - Straddle Low $1.98
GIGM Apr 2008-17.5 - Straddle Low $2.78
Straddles that were expensive on a relative basis:
AMGN Mar 2008-42.5 - Straddle High $4.65
FITB Mar 2008-22.5 - Straddle High $1.78
ARRS June 2008-7.5 - Straddle High $10.00
CAH Mar 2008-55 - Straddle High $3.65
CTAS Mar 2008-30 - Straddle High $2.18
GIS Mar 2008-55 - Straddle High $3.03
GS Mar 2008-150 - S! traddle High $15.30
HNT Apr 2008-35 - Straddle High $4.88
LEH Mar 2008-40 - Straddle High $6.65
LEH Mar 2008-45 - Straddle High $5.08
LEH Apr 2008-40 - Straddle High $9.65 See the full report here: Full Report
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This is not a solicitation or recommendation to buy any securities, options or financial instruments of any type. Any information in this email is for educational purposes only.
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Option Idea of The Week 
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