Ron; RE:" day-trading w/options... "
...in my experience, it works well when you can catch one going "over the hump" of some options strike boundary. Say, for example, what Berney just did: you buy a 75 strike CALL on LU when the underlying is trading at ~73, then you dump it today when LU is trading at ~78.
But I (personally) do not like to buy near-month options, and I often buy further out, paying a premium, simply because keeping track of decay is another dimension for my addled brain to cope with.
Many folks, myself among them, prefer to sell options rather than buy them, even to go long (by selling PUTs). That way, the decay works in your favour, and in case nothing happens, you still make money. Of course, near-month options are great when you want decay to work in your favour.
Jurgen is a real LEAP master - he is seldom wrong, and worth watching.
Are you using any particular software to compute option spreads ?
-Steve |
