Exiting a position

Discussion in 'Options' started by insaneinvestor, Aug 20, 2007.

  1. Why in the world would you need a multi leg options position if you're so good at predicting short term moves in the underlying? What a waste it is to cross three markets to put on a position if you're looking to capitalize on short term moves which you say you can predict. Why not just use the futures? or straight puts and calls to leverage your directional speculation?
     
    #11     Aug 21, 2007
  2. I would rather only risk $100 +- than over 1,000 (just in case I am wrong)
     
    #12     Aug 21, 2007
  3. Trade smaller size and use stops in the underlying. Sounds like you're trying to drive a finishing nail with a sledge hammer by using an options position where you cross 3 markets in order to leverage a short term spec in the market
     
    #13     Aug 21, 2007
  4. I don't understand.. how can I trade smaller than 1 contract?

    Am I better off waiting to closer to expiration before I get my panties in a bunch?
     
    #14     Aug 21, 2007
  5. cdowis

    cdowis

    Butterfly is a rather complex position for such a simple goal.

    If you are looking for low slippage, you may consider looking elsewhere -- spreads or calendar.
     
    #15     Aug 21, 2007