How to trade a simple move with options?

Discussion in 'Options' started by spinn, Sep 9, 2006.

  1. spinn


    The dow futures are currently trading around 11500....if I think that in two months, the dow will be trading at 10950, what is the best way to trade that with options?

    I know you could buy puts....but the time premium works against you. Selling calls is good but requires more margin than I want to use.

    So...whats the best way to make this work??

    Lets not debate my call....lets just assume that on 11/15/2006 YM is at 10950.