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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: redwood who wrote (6564)8/8/1998 9:57:00 PM
From: MrGreenJeans  Read Replies (1) of 42834
 
Options

<<i wish anyone with an opinion of buying options on this theme would post their thoughts here-negative or positive-strike prices an months,etc....thanks....redwood>>

Briefly, you must be right on both speed of the market and direction of the market when buying options. Always buy in-the-money options since they have the best chance of showing a profit. My second choice would be to buy at-the-money options but these are the volatile options with very high risk. As for out-of-the money options, I would stay away from them as they usually have little chance to be profitable.

Finally, for most people options are speculative investments. Be prepared to lose the premium you pay and never go short an option due to the open ended risk associated with the instruments.
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