Options Exit Question

S

socaldodger

Hi:

I have a few questions:

1. - For people that do 2-4 week trades on average how long does it take for you guys to exit?
2. - What about for 4-6 week trades?
3. - And lastly 6-8 week trades?

TIA
 
Quote from DeepFried:

It depends on how much fiber I've been eating. :)
More...

LOL....

Okay let me re-phrase this. I'm currently learning about options..... What I'm interested in is short term trades (covered calls). I would like to do some different trades in which I could enter & exit within the following time frames:
1. 2-4 weeks
2. 4-6 weeks
3. 6-8 weeks

What I would like to know is at what time should I be looking at exiting for each one of these times frames? For those of you who have traded covered calls within these time frames....on average when did you exit?
 
Okay, I think I understand. I think most people who use covered calls wait until expiration and either let the calls expire or let the stock get called away.

I assume you're trying to generate income from time decay. Since you're getting the most rapid time decay from the nearest months that would mean your trade lasts roughly 4 to 12 weeks.

Usually the easiest part of options trading is picking a trade and diving in; it's managing the trade and its evolution over the life of the position that's the really difficult part. It's probably a good idea to have a lower preset stop on the stock price at which point you sell the stock and buy back the call.

I hope this helps.
 
Quote from socaldodger:

LOL....

Okay let me re-phrase this. I'm currently learning about options..... What I'm interested in is short term trades (covered calls). I would like to do some different trades in which I could enter & exit within the following time frames:
1. 2-4 weeks
2. 4-6 weeks
3. 6-8 weeks

What I would like to know is at what time should I be looking at exiting for each one of these times frames? For those of you who have traded covered calls within these time frames....on average when did you exit?
More...

May I ask why covered calls? Do you already hold some stocks and wanna write some covered calls against them or do you actually wanna do buy-writes (i.e. buying the stock just to write covered calls)?
 
You must log in or register to reply here.
Back
Top