karennma
8,057 posts
msg #125327
- Ignore karennma |
9/30/2015 2:41:28 PM
Have you traded many Leaps?
(Or Options out more than 4 months)
THx.
Karen
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Kevin_in_GA
4,599 posts
msg #125328
- Ignore Kevin_in_GA |
9/30/2015 3:13:16 PM
Nope - I have heard of them but never really looked at them for any of my systems. Is this something you are evaluating?
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karennma
8,057 posts
msg #125330
- Ignore karennma |
9/30/2015 5:40:29 PM
Yes, .. "evaluating".
I completely understand how the short term options work, but for the life of me, I can't understand Y on earth anyone would pay $$$$s of dollars for "leaps" (options 6 months out) because I KNOW (and please, take me literally when I say I KNOW), the extrinsic value of options isn't worth a can of beans from the Dollar Store as you get closer to expiration.
It's like buying a brand new car. Once you drive it out of the lot and get home, you've already lost 20% of your money.
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karennma
8,057 posts
msg #125352
- Ignore karennma |
10/1/2015 2:15:03 PM
I've started a Options thread in the "trading" forum.
We'll see how it goes.
:>/
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gmg733
788 posts
msg #125398
- Ignore gmg733 |
10/4/2015 1:36:53 PM
It's all about the Greeks Karen.
When the SPY broke its recent 12 month moving average I considered selling a calendar spread because I thought the market from a long term was going down and I wanted delta on my side for that long term move without having Theta eat away at profits. Calendars are good for that.
What I did instead is purchase the SH. No leverage but net result is about the same.
Another option would be to sell a long term calendar and buy short terms against it. Helps finance short term options and addresses brokerage margins vs naked.
I hope this helps. Been focusing on futures trading lately. :)
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