Is it better to swing trade options near expiration or far from expiration?

Discussion in 'Options' started by TraderGreg, Jun 16, 2008.

  1. Trade 40-100 days from expiration.

    Yes, as asap pointed out, LEAPS have huge vega risk.
     
    #11     Jun 17, 2008
  2. There is a difference between an option trader and a stock trader that uses options. If you are the latter, i would not recommand try to swing trade by going long using option contracts. It's a loser's game.

    And a good qualifcation test whether you are an option trader or not is to search for atticus posts in this section, if you can understand 90% of what he's talking about as you read it through, then maybe :p

    I learned enough about options to know the basic behaviors, vol and greeks so i can use it as another tool for my stock trading. But focus has always been on getting the right underlying price movements only.
     
    #12     Jun 17, 2008
  3. I'll try splitting half the number of contracts I usually buy, then splitting half that into front month and the next month. I'll track my results closely, I always do. I'm not interested in LEAPs, they just wouldn't make any sense to swing. Thanks for your help.
     
    #13     Jun 17, 2008