Simple Question

[OTM-Options]

its the AAPL April 24 116 strike

sold 1/2 of my position with todays move, expecting lower but not gonna be too greedy

IMO ........ OTM options that expire within a week are much better to buy than the longer term OTM options. April 24 is too far out to be buying.


PROS

• You are forced out of a losing trade quicker, no wasted time hoping for a rebound.
• Cheaper entry.
• No need to pay for time value that you don't use. Time is your enemy.
• Entire debit can be the risk.
• Better Risk/Reward ratio.

CONS

• N/A

 

[heavenskrow]

IMO ........ OTM options that expire within a week are much better to buy than the longer term OTM options. April 24 is too far out to be buying.


PROS

• You are forced out of a losing trade quicker, no wasted time hoping for a rebound.
• Cheaper entry.
• No need to pay for time value that you don't use. Time is your enemy.
• Entire debit can be the risk.
• Better Risk/Reward ratio.

CONS

• N/A

i dont know man. I feel like I need more time than anything. Id rather pay time decay then seeing an option I own bounce opposite or with Option expiration see some funky move before they expire to become worthless. At least if I have some time, I can sell before it bounces too much counter to me and still have it not be worth 0.

 

[heavenskrow]

Relooking at old threads.....interesting ......pretty much saw AAPL top but should have just sold the stock instead of trying to time with options, until I saw other participants joining the short side. Well live and learn.