Financial News

Schaeffer’s Option Coach: A Theoretical Long Condor on Linear Technology Corp.

Welcome back to another in a series of articles that examines the thought processes behind a variety of option strategies using stock, index, and/or exchange-traded fund (ETF) options. One interesting trading strategy that we haven't covered in a while is the long condor. This column will examine a long condor, the pros and cons of putting on a long condor, and the profit and loss potential of this position. So, let's jump into this interesting strategy.

Today, our trader has turned his focus to the shares of Linear Technology Corp. (NASDAQ: LLTC). The equity has staged a nice rally, gaining more than 26% since the beginning of 2009. However, the stock has been trapped in a sideways channel between resistance in the 28 area and support in the 26 area since mid-July. The equity recently attempted to break out of its trading range, but was halted by resistance at the 29 level and has since pulled back into its former trading range.

To continue reading this article, click here: http://www.schaeffersresearch.com/commentary/content/the+option+coach+long+condor/observations.aspx?click=home&ID=95827&source=businesswire

Contacts:

Schaeffer's Investment Research
Jocelynn Drake, 513-589-3800
jdrake@sir-inc.com

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