Question on writing options on futures

Discussion in 'Options' started by nravo, Aug 1, 2006.

  1. nravo


    Scaling in over a couple days versus taking a position in one fell swoop: Preferences? Rationales?
  2. I'm not sure what you mean by "scaling in". If you're going to write options, it would seem writing them sooner rather than later is better for collecting theta.

    One way or the other, you're going to have to defend your short strike.
  3. If you "scale in" to a position, you might want to reconsider your strike price selection if the underlying moves around too much. You'll still have to prevent small losses from becoming big losses with your open position.