This article was originally published in The Option Strategist Newsletter Volume 10, No. 23 on December 13, 2001.
This strategy was mentioned in the “Striking Price” column in Barron’s last Sunday, and we have received several questions from subscribers asking about the strategy. The strategy has been around for a long time – since the inception of index options, actually – but it is something of a professional strategy, so it’s not widely know. However, it is gaining more popularity lately, so it is the subject of this week’s feature article.
