I propose you to observe the process of my next option combination conducting.
Size of investment for one combination is 50,000$. For purchase straddle i put no more than 2/3 total amount of investment. The remained sum is necessary for management of a combination. Today i opened long straddle of CAT (Caterpillar Inc.). It has been bought 35 contracts of NOVEMBER’12 90 CALL (4.57$) and 35 contracts of NOVEMBER’12 90 PUT (4.88$). In purchase it has been spent: 9.45*100*35=$33,075. Further i will conduct the combination.