Here is an option trade I just put on 5 mins ago, we'll see how it does. I bought 10 AAPL $95 puts for July, paid $6.28 on 5 and $6.30 for 5. I have defined my max risk to premuim paid ($6,290) and have equivalent control of 1,000 shares. Only way I lose all the money is to hold this until expiration, ( I am not an investor and that isn't in the cards). If we go and retest the recent lows under $85, i will essentially sell these around $12 depending on time thus doubling my investment. If the market trades up to new highs at $105, the option, once again depending on time, will be worth approx $2.50-$3.00 representing a loss of roughly $3.50 if I close it out at that point. Had I shorted the shares instead, I would be out $10. I will chime in again when I close this position out.
usually 2 weeks or less. sometimes only a couple of days. I believe some of my success is because I don't necessarily hold for pre-determined targets. If the market gets there, fine. But I am not afraid to just close out if it isn't moving in my direction in a short time frame. The longest dated options I have on now is some Dec 139 puts on SPY. Paid $3.80 for 15 and $5.20 for 15. I do plan on holding those for awhile as I am inclined to think we trade lower over the next several months.
With stocks you can always wait for the stock to recover (Don't overdo it!) With futures and options you have preset expiration dates.