best options strategies for advanced beginners

I was one of the less intelligent ones. I have a BSEE from Boston University. That is great being around such great traders.

 

I just want to buy options. Not write options.

I know next to nothing about options, so I'm a beginner...

Are different maturity terms offered on DJIA and ES options? How about for Big Tech Stocks like Tesla?

If I was looking for a quick swing trade, and I had an idea on direction, I would want to buy options close to their expiration in the anticipated direction.

Is this more or less correct ? Get more leverage on the anticipated move ?

 

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So for earnings, buy options before earnings release ?

Also look for stocks with options expiring close to earnings release ?

 

For some strategies such a combination is indeed an advantage.

 

You just have to remember 90-95% of options expire worthless, so you buy the 5% that are not, or get out before expiry.

 

You will do just fine trading for fun after retirement.

 

WallstreetBets seems to focus on options close to expiration. Or at least some of the WSB traders do - buy options with 2 weeks to expiration. Etc. Hoping for a big move.

 

For an expected high-impact-event (such as ERR or FDA or any other major corporate event), it is financially beneficial to do the trade the day before the event day, especially if a LongStraddle like here is used: https://optioncreator.com/sthljiy
DTE is 1. If you use a higher DTE then the cost of the trade will increase.
Ie. it's an optimization problem: with LongStraddle (and LongStrangle) the shorter the DTE the better, ie. the cheaper the trade.

ERR: Earnings Report Release
FDA: FDA approval (or denial) decisions on new medics, drugs etc. (mainly sector/industry biotech, pharma, food)

 

Thanks. I think so. I am not going to bet the farm on options, so it will be a nice hobby. Hopefully one that is profitable.

 

Good thing I don't have a farm.