ATM vs OTM

Discussion in 'Options' started by noob_trad3r, Sep 8, 2010.

  1. When selling options, I prefer selling ATM or slightly ITM options with 30-45 days of life. once and a while I will sell a OTM if the price seems right.

    Usually I wait for some kind of big swing etc.. news activity and sell at those points.

    Do you guys like to stay close or far from strike price?
     
  2. can you fill in a few more details?....are you doing spreads?.... what underlies are you using?....


     
  3. steoli

    steoli

    Normally i sell where i would want to be short...

    I shorted calls on APPL yesterday at the 140 strike...



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    Feel that's a buy? Then sell...
    http://tradingthecow.blogspot.com
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  4. I will sell a straddle on a rare occasion. I never sell singles, always combinations.
     
  5. i sell cash covered naked puts/covered calls on <$15 stocks i want to own.

    recently getting back into the options game with a small account doing flies + iron condor, it's just too addicting even though i dont have the time.