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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (141091)	10/15/2010 12:46:36 PM
From: Big Dog	Read Replies (1) \| Respond to of 206191

The key to success is loss management. (I think there is a BBR Legend that used to preach that around here...along with Plan Your Trade and Trade Your Plan.) You can just as easily close out that long stock position against a loss as close out the short option when the premium doubles. It would be interesting to put some real numbers to that and see if there really is any difference. I'm also trying to figure out how to learn a couple of things: 1. Which is the better deal, selling the option at the same strike price, but further out in time or selling the near month? Is the November Put at X strike price a better deal than the further out Put at X strike price? How is this figured? I know that the risk profile changes (intangible) as well as the pure math return. How do I do the math part? What to look for? (The intangible part is interesting too...but lots of factors.) 2. How to determine which is better on a given stock - to buy the stock and sell a call, or to sell a put? I haven't got my head around this yet. big