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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Debt Free who wrote (162167)	1/9/2012 8:55:01 AM
From: CommanderCricket	Read Replies (1) of 206181

Doug, "it could be worthwhile to rethink the 200% rule for an option that doesn't expire for 60, 90 + days." Don't think so. Even with a lot of time left, I still think it's better to close to the position and re-evaluate. If an option doubles on you, you've made a mistake and for an option 6 - 9 months away from expiration, you've got a problem as it's more difficult to move these options around. Depending how far you are out of the money, these options usually have delta's around 0.20 - 0.40 and for the position to go that far against you, something is wrong. An possible exception would be if the option is still out of the money and you've got the money to back it up. Michael

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