Long dated buying

.sigma

.sigma

Need some input on long call/put buying.

Whats your experience in buying specifically calls (could be puts, tho) on long dated options for a long-term play. I'm talking options with at least 3-6-9+ time frames.

I never bought an option over 3 months until exp, so not quite sure how these types of options move over these periods of time.
 
.sigma said:
Need some input on long call/put buying.

Whats your experience in buying specifically calls (could be puts, tho) on long dated options for a long-term play. I'm talking options with at least 3-6-9+ time frames.

I never bought an option over 3 months until exp, so not quite sure how these types of options move over these periods of time.
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Understand that you have exposure to Rates as well. Calculate the forward. Beyond that, make sure you're model is solid as your Vega (if DN) is your biggest exposure.
 

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I've got a couple of spreads on right now for EOY. Unlike my usual games around vol, they're bets on fundamentals (in this case, rates.) Not something I do too often unless I see an obvious move.

Forget greeks - theta most of all (you're paying so little that it might as well not exist at all.) They're just strongly-directional trades - winged off in my case because I don't feel like paying the ticket for an increase/decrease to inf/0.

Can't think of anything else that might be of interest, but if you have some specific question, feel free to ask.
 
.sigma said:
Need some input on long call/put buying.

Whats your experience in buying specifically calls (could be puts, tho) on long dated options for a long-term play. I'm talking options with at least 3-6-9+ time frames.

I never bought an option over 3 months until exp, so not quite sure how these types of options move over these periods of time.
More...
Timing is important.
 
.sigma said:
Need some input on long call/put buying.

Whats your experience in buying specifically calls (could be puts, tho) on long dated options for a long-term play. I'm talking options with at least 3-6-9+ time frames.

I never bought an option over 3 months until exp, so not quite sure how these types of options move over these periods of time.
More...
You are a speculator if you long call/put buying. There aren't that many of us here on ET doing it because it is hard, with a low win probability.

Unless:
mervyn said:
Pelosi trades
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But, if you can find the right balance you can make good money. Timing is one key factor.
 
ironchef said:
You are a speculator if you long call/put buying. There aren't that many of us here on ET doing it because it is hard, with a low win probability.

Unless:


But, if you can find the right balance you can make good money. Timing is one key factor.
More...

no, on large caps, her strategy is essentially buying stocks, with 100 times leverage. time factor is only on paper, vix is calculated just 1 year ahead. theta doesn’t come into play until 6 months before the expiration.
 
mervyn said:
no, on large caps, her strategy is essentially buying stocks, with 100 times leverage. time factor is only on paper, vix is calculated just 1 year ahead. theta doesn’t come into play until 6 months before the expiration.
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Sorry, I thought you were referring to insider trades. Most insiders favored buying long calls/puts once the direction is known prior to the public's knowledge.
 
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