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Strategies & Market Trends : BEFRIEND THE TREND Short-term Options Trading Thread -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Stoxx who wrote (946)	2/18/2002 1:59:19 AM
From: sean sanders	Read Replies (1) \| Respond to of 4058

TC, One thing I had found while trading options with less then one month to go before exp. was that it seemed that basically I had to be right and right fairly soon. ie If the stock didnt go where I wanted it to go or even took a bit to get there ie retraced a bit; I found myself in a position if I sold out on my options contract I would be loosing a lot due to the bid/ask and lower liquidity then say a stock trade. Even if I waited it out as expiration grew closer I would end up making less then I first anticipated because of time decay. Now sometimes I was right and right fairly soon after I got into the trade so the above didnt matter as much but it seems to be a bit different then the typical stock trades. Hence I have been 'fooling' around with the idea of trading options more with longer terms say 3~months. Gives me more time to be right and I'm not fighting the clock if I get a 1-2 week pull back. Then again you are paying a bigger price for the option in the first place and you are not making as much if you get a quick move. I guess that's why they call it the trading game ... got to figure out how to play is all Sean