Hi, What is the best expiry date to choose when swing trading options. (at the money) weekly is too volatile and dangerous, if you're wrong you're wiped out. a few months out, can be too far that the option premium doesn't move. What is considered as a good medium term expiry date for swing trading options? (I get direction right most of the time, only timing is a bit of a problem, I'm sometimes 1 or 2 days too early before the option starts moving in the direction I predicted, and with options that's already risky as the premium can lose a lot of value in 1-2 days). The option has to move but not too much. What do you guys think? 2 months, 3 months? When is decay the worst?
weeklies can be very rewarding when right! Why not size down to the level where a 100% loss wouldn't be so terrible, given at other times you can make 100, 200%?
Yes I have thought about that, and I will do that. But for positions who are a bit larger I search for a good rule of thumb expiry date