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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (9752)2/28/2001 7:47:13 AM
From: Poet  Read Replies (1) | Respond to of 10876
 
Hi mish:

Yes, the OTM LEAPs puts on the big financials are referred to as BK insurance on the CFZ, right? My concern with that is the LEAPs strategy. If the market continues to grind sideways for a number of months, the premiums on those LEAPs will decay like mad. Maybe I'm biased because I'm a short term trader, but I'd look to buy OTM puts only a couple of months out so I don't have to pay the extra premium.