remember the way calls work: If you think we rally any
day, then going shorter term will work and cost you the least
premium. But if are still worried about it taking more time and
going lower first, then you want to go out further, you pay more
premium but gives more time for it to work. That's the 'art'
of playing options, taking into consideration time and premium and
risk, how much delta do you go i.e. way in the money or not etc
Posted by bojackson on 21st of Dec 2018 at 02:30 pm
For those that want to educate themselves on options, read the
first few chapters of Options as a Strategic Investment by Lawrence
McMillan. Older book from 1992, I think but the information
is laid out well. Then familiarize yourself with the profit
curves in the appendix. Read the basics a few times to let it
sink in as to how they function, then that will give you a good
knowledge base. There is intrinsic values, exponential time
decay, volatility, break even points, etc all a part of what to
know about options.
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matt, can you pls comment
SPX 15 min
Posted by imelhoe on 21st of Dec 2018 at 01:30 pm
matt, can you pls comment on iwm support, is it safe to go long on iwm calls out two weeks
remember the way calls work:
Posted by matt on 21st of Dec 2018 at 01:35 pm
remember the way calls work: If you think we rally any day, then going shorter term will work and cost you the least premium. But if are still worried about it taking more time and going lower first, then you want to go out further, you pay more premium but gives more time for it to work. That's the 'art' of playing options, taking into consideration time and premium and risk, how much delta do you go i.e. way in the money or not etc
For those that want to
Posted by bojackson on 21st of Dec 2018 at 02:30 pm
For those that want to educate themselves on options, read the first few chapters of Options as a Strategic Investment by Lawrence McMillan. Older book from 1992, I think but the information is laid out well. Then familiarize yourself with the profit curves in the appendix. Read the basics a few times to let it sink in as to how they function, then that will give you a good knowledge base. There is intrinsic values, exponential time decay, volatility, break even points, etc all a part of what to know about options.