How far ahead do you buy weekly options?
Posted in the Business News Forum
Since: Jun 13
#1 Jul 31, 2013
The most recent one for me was a NEM Covered Call using strike 34 options when the stock was just under $34. I think that was about 7 trading days prior to expiration which I find is a good time because the very last week the premiums aren't great but about 7-10 trading days prior the premiums are fairly good, the decay rate is very large, and the holding period is short.
The return was about 1.9% which may not sound amazing but that's about a 10 day return of 1.9% so it's hard to go too far wrong. As always it's a matter of personal preference, if you go out slightly longer you'll get a better premium but your holding period will be longer which means you've got less visibility into what the market will be doing weeks down the line as opposed to days. I find that 7-10 day period offers a nice balance between holding period and return.
To explore more visit us at "markettamer"
Add your comments below
|Congress doesn't want you to eat your dog or cat||1 hr||Johnny Argent||744|
|Tesla Sues Employee For Alleged Fake News Leaks...||Fri||Ismael Gerli||1|
|Republicans are going to hate what Donald Trump... (Aug '15)||Jun 21||reporterwithoutbo...||45|
|SkimmingWorld the best Vendor on the planet! (Oct '17)||Jun 20||Bando19||18|
|The Digital Sex Lives of Young Gay Teenagers||Jun 14||Tre H||2|
|Speaker Ryan Dismisses Trump's Charges of a Spy...||Jun 13||davy||52|
|Copart To Defend VB2 in Manheim Lawsuit (Jan '06)||Jun 9||Carbroker||800|
Find what you want!
Search Business News Forum Now
Copyright © 2018 Topix LLC