Is there a fixed date in a month when options tend to be cheaper?

[crgarcia]

i.e. right after expiration, first/last days of the month, etc?

 

[xflat2186]

if there was who would buy before then?

 

[spindr0]

During the month, puts are usually cheaper at the high print of the stock and calls are usually cheaper at the low print of the stock.

 

[SomeYoungGuy]

Yes, January 23rd is the best day to buy options.

or

Yes, the day after they expire. None of the options seem to have any time decay after that; you can pick them up for intrinsic value alone.

or

You have 3200+ posts and you can't whip up some stats on your own?

 

[xflat2186]

Come to think of it after 20 years in the business I have noticed one thing. The time premium falls to nearly zero in the moments leading up to the closing bell on expiration friday.

You might want to consider buying then to limit the net dollar amount of premium.

 

[spindr0]

Quote from xflat2186:

Come to think of it after 20 years in the business I have noticed one thing. The time premium falls to nearly zero in the moments leading up to the closing bell on expiration friday. You might want to consider buying then to limit the net dollar amount of premium.

Dayam!!! Why didn't I think of that?
(whacks head with telephone)

 

[nitro]

Quote from crgarcia:

i.e. right after expiration, first/last days of the month, etc?

Your question makes sense. Don't think in terms of time, but in terms of theta vs gamma. Do research.

 

[crgarcia]

Quote from xflat2186:

Come to think of it after 20 years in the business I have noticed one thing. The time premium falls to nearly zero in the moments leading up to the closing bell on expiration friday.

You might want to consider buying then to limit the net dollar amount of premium.

I meant options with some time to expiration left.
(at least one month).

 

[SomeYoungGuy]

Quote from crgarcia:

I meant options with some time to expiration left.
(at least one month).

Yeah, we know. We were being smart asses.

Like nitro said, start looking at time decay and ITM / OTM and see if you can game the system to providing just the combo of discount that you are looking for.

Care to share what angle are you looking at?

 

[SForce]

Quote from SomeYoungGuy:

Care to share what angle are you looking at?

I'm guessing the whole "buy low sell high" angle. But maybe he's found a better way.