Simple Question

Discussion in 'Options' started by heavenskrow, Mar 20, 2015.



  1. IMO ........ OTM options that expire within a week are much better to buy than the longer term OTM options. April 24 is too far out to be buying.


    PROS
    • You are forced out of a losing trade quicker, no wasted time hoping for a rebound.
    • Cheaper entry.
    • No need to pay for time value that you don't use. Time is your enemy.
    • Entire debit can be the risk.
    • Better Risk/Reward ratio.

    CONS
    • N/A



    :)
     
    #11     Mar 25, 2015
  2. i dont know man. I feel like I need more time than anything. Id rather pay time decay then seeing an option I own bounce opposite or with Option expiration see some funky move before they expire to become worthless. At least if I have some time, I can sell before it bounces too much counter to me and still have it not be worth 0.
     
    #12     Mar 26, 2015
  3. Relooking at old threads.....interesting ......pretty much saw AAPL top but should have just sold the stock instead of trying to time with options, until I saw other participants joining the short side. Well live and learn.
     
    #13     Feb 23, 2016