I trade options often, though I don't trade LEAPs. If you are considering trading options based on Matt's systems, or some other system that is fairly short term in duration, I would recommend shorter term contracts. As short as 2 weeks to maybe 3 months out. My favorite type trades are Calendar spreads and Diagonal Spreads. Before doing any of that be sure you take the time to understand the effects of volatility on options. As an example if you buy calls after a quick drop in price of the market, you could be paying a large premium to intrinsic value simply for the price of volatility. IMHO, that is the best time to sell options, not buy. When volatility begins to drop, the price of the option will decrease, all else being equal. Sorry if you knew all this already, I just get nervous when the fist sentence is "I  don't have much experience with options", LOL. Read lots of books, and make a few practice trades before using real cash. Just my two cents.

    Very well stated.

    Posted by bverse on 25th of Oct 2021 at 10:11 am

    Very well stated.

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