This is the stream of Google prices today. Around 10:15 it looked like Google was pinned to the 430 strike, but it dropped a half hour later to 428.5 and then came back. By 11:45 it was clearly drifting lower, and didn’t come back to 430 until 1:45. Until the close, it stayed pretty near to 430, closing 21 cents above it.
So I sold this straddle for an average price of $3.70 and watched the elephant on a rope. It could break free any time and head off in another direction. Around 3:30 I bought it back.
Apple (AAPL) was pinned to the 150 strike by 10:14 and stayed there for three hours before taking off to end at 151.75. When I noticed that it was pinned around noon, the 150 straddle was selling for about $0.80 which I thought was too tight.
Bank of America (BAC) never strayed very far from the 13 strike, but the straddle would have been too tight also.
Look at Mastercard (MA), it is all contained between 179.50 and 181. Wish I had looked this morning.
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