Short term options play

Discussion in 'Options' started by BoilerGRAD, Mar 16, 2009.

  1. Unless the bid/ask spread is very narrow, you can almost always get a higher price than the bid price when selling.

    Selling at the bid price and buying at the ask price is not the way to make money when trading options.

    I did not express (nor do I have) on opinion on how much time premium you want when you buy options. I don't buy options as a directional play, so cannot offer advice (except that it's a very difficult way to make money).

    Yes, the less time premium in an option, the less its price changes when IV changes.

    Mark
     
    #11     Mar 16, 2009