yejian
commented on
TLDR: Knowing how time decay works, the rule of thumb that I used for choosing an option's expiration date is: 1. If I'm selling an option, I choose an expiration date that is around 30 days. 2. If I'm a buyer of an option, I choose an expiration date that is more than 1 year.
Story time
If you do not know what an option is, do read the Explained Simply: Options series here
In the market, there aren't many things that are guaranteed....
Story time
If you do not know what an option is, do read the Explained Simply: Options series here
In the market, there aren't many things that are guaranteed....
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$Facebook(FB.US$ Is this K-line about to get out of the top of the shoulders
Translated
yejian : I like to sell one-year or 200-day contracts; I generally don't buy options. I usually sell a long-term contract when a certain stock has gone up a lot and I really want to sell it. When a stock that has been coveted for a long time can no longer fall even to a 52-week low, sell a one-year term at a much lower price to pick up the flying knife. What does the master think