Schaeffer's Advanced Options: A Hypothetical Long Guts Play on James River Coal Company
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CINCINNATI--(Business Wire)-- In yesterday's edition of Advanced Options, we dissected the long guts strategy, which is a unique option play designed to capitalize on significant price swings. In today's column, we're going to make this strategy even more tangible by analyzing a theoretical long guts play on James River Coal Company (NASDAQ: JRCC). Review Before we begin, let's recap what we've learned so far. With earnings season in full swing, option traders have a plethora of strategy options (no pun intended) to profit from a stock's volatility, including straddles, strangles, strips, and straps. A lesser-known addition to that list is the long guts strategy, which is initiated by simultaneously purchasing one in-the-money call and one in-the-money put with the same expiration. To continue reading this article, click here: http://www.schaeffersresearch.com/commentary/content/advanced+options+a+hypothetical+long+guts+play+ahead+of+earnings/observations.aspx?click=home&ID=94369&source=businesswire Schaeffer's Investment Research Andrea Kramer, 513-589-3800 akramer@sir-inc.com Copyright Business Wire 2009
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