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+\O.,ter 18: Buying Puts in Conjunction with Call Purchases 291 
+since when the outright purchase of a call was discussed, it was shown that the 
+purchase of an in-the-money call was more conservative than the purchase of an out­
+of-the-money call, in general. The same was true for the outright purchase of puts, 
+perhaps even more so, because of the smaller time value of an in-the-money put. 
+Therefore, the strangle created by the two an in-the-money call and an in-the­
+money put - should be more conservative than the out-of-the-money strangle. 
+If the underlying stock moves quickly in either direction, the strangle buyer 
+may sometimes be able to take action to protect some of his profits. He would do so 
+in a manner similar to that described for the straddle buyer. For example, if the stock 
+moved up quickly, he could sell the put that he originally bought and buy the put at 
+the next higher striking price in its place. If he had started from an out-of-the-money 
+strangle position, this would then place him in a straddle. The strategist should not 
+blindly take this sort of follow-up action, however. It may be overly expensive to "roll 
+up" the put in such a manner, depending on the amount of time that has passed and 
+the actual option prices involved. Therefore, it is best to analyze each situation on a 
+case-by-case basis to see whether it is logical to take any follow-up action at all. 
+As a final point, the out-of-the-money strangles may appear deceptively cheap, 
+both options selling for fractions of a point as expiration nears. However, the proba­
+bility of realizing the maximum loss equal to one's initial investment is fairly large 
+with strangles. This is distinctly different from straddle purchases, whereby the prob­
+ability of losing the entire investment is small. The aggressive speculator should not 
+place a large portion of his funds in out-of-the-money strangle purchases. The per­
+centage risk is smaller with the in-the-money strangle, being equal to the amount of 
+time value premium paid for the options initially, but commission costs will be some­
+what larger. In either case, the underlying stock still needs to move by a relatively 
+large amount in order for the buyer to profit.