Hello jebj, JP or anyone, I have a question about options; Though I do trade in options, I still have a lot to learn, also, I see a lot of meaningful discussion on this thread, so this question...
Based on the current capital I have to trade/invest (100K), I can not leave my job,,, so the only high risk high reward choice available to me is to play options, if I want to day trade in the next 2-3 years IMO...
Say for example I want to buy options on BKS, in anticipation of their IPO and price rise IMO, which calls give the maximum % gain... Assuming I am expecting the price to reach 55-60 in March/April... is it better to buy April/July 30-35 calls or Apr/July 45/50 calls?
I mean what should be the better strategy? Some people say buy deep-in-the-money calls, as they are safe and rewarding relatively speaking... Others say buy deep-out-of-the-money calls as they give max % returns...
I hope I am not confusing everyone here...
Thanks in advance,
DB
PS : One other SI member suggested I read book called "OPTIONS AS A STRATEGIC INVESTMENT", which I am planning to do, but it is my experience that I can explain better in 2 minutes, what took me 6 months to learn ... |
