Saturday, 21 September 2013

HOW TO TRADE IN OPTION NEAR EXPIRY

Theta changes at an exponential rate. In English, that means that the time value of any options you’re holding will decay more quickly the closer those options are to expiration. If you’re an option buyer, that means you want the move in the underlying to happen sooner rather than later, because even if you’re right about the direction of an underlying, those long calls you bought last month might still be losers even if your stock makes a big move today, because once you’re close to expiration there will be very little time premium left in those calls....


Conversely, if you’re an options seller, it might seem pretty intuitive to say that since theta accrues more quickly near expiration, you should just sit on your hands until the Tuesday before expiration, and then go out and sell the heck out of every option you can find. When it comes to trading near expiration, there are almost as many opinions about what to do as there are traders.  I'm a strong believer that it's best to avoid holding any positions into expiration, but that's especially true for short positions. It is adviced to start trading in next series from the Monday of expiry week.
More about Option Call Put tips on google+
Posted on

20 comments:

  1. cheena26 September 2013 at 10:29

    This post is really useful to all the traders and investors on Indian stock market. I appreciate the effort kept by the author for publishing this post. I also request to keep posting such useful articles for option tips in the financial field. In that attempt, I also recommend to get some more information on .Investing is always a good option to increase the returns but types of investments and its methods are only known by good posts and articles like this. Once again, regards for such good option post thanks for this……

    ReplyDelete
  2. radha26 September 2013 at 10:30

    THANK YOU so much for this advice! I’ve got my target, I am loving the ideas of option tips thanks for inspiring me to do something by this option tips...

    ReplyDelete
  3. gopal26 September 2013 at 10:32

    Nice post ! grate tips you are post in option blog its helpful for me you are providing good tips of option calls and put and also the language of the article is very simple,it is very easy to understand..

    ReplyDelete
  4. parag26 September 2013 at 10:37

    Great option tips you are post. I was checking constantly this blog and I am impressed! Very useful info specifically the last part of option call put tips.. I care for such information much.I was looking for this certain information for
    a long time. Thank you and best of luck.

    ReplyDelete
  5. shilpa26 September 2013 at 10:40

    Fantastic option tips you are post however , I was wondering if you could
    write a litte more on this subject? I’d be very grateful if you could elaborate a little bit more. Thanks!

    ReplyDelete
  6. Unknown27 September 2013 at 11:07

    This post is really useful for all traders and investors of India on share market.
    commodity tips

    ReplyDelete
  7. Stock Tips Tomorrow30 September 2013 at 15:55

    Market today completely was in bearish mode but it was consolidate after declined 1.12%. more update FREE STOCK TIPS
    and TODAY OPTION TIPS

    ReplyDelete
  8. sumit17 October 2013 at 14:33

    I also request to keep posting such useful articles for option tips in the financial field. In that attempt, I also recommend to get some more information on .Investing is always a good option to increase the returns but types of investments and its methods are easily explained by you.thanks

    ReplyDelete
  9. prasanna sahoo17 October 2013 at 14:35

    Fabulous ideas! Have a safe trading and I am waiting for your next post!keep it up

    ReplyDelete
  10. md asgar17 October 2013 at 14:36

    I m reading your all blogs this are very great and all information is very useful and helpful for me thanks to providing such kind of logical blog of option…

    ReplyDelete
  11. chinnasamy17 October 2013 at 14:38

    Great information you are delivered in your option blog. Keep up the amazing effort..good luck for your

    ReplyDelete
  12. Rutvij Modi17 October 2013 at 14:53

    Great option tips you are post. I was checking constantly this blog and I am impressed! Very useful info specifically the last part of option call put tips.. I care for such information much.I was looking for this certain information for
    a long time. Thank you and best of luck.

    ReplyDelete
  13. Unknown31 October 2013 at 14:53

    This blog is useful for all trader who invest for option trading.grate option tips provide through this blog. very helpful information for me so Thanks for the post.and please give more about option tips.best stock tips provider in india

    ReplyDelete
  14. Harish12 November 2013 at 10:48

    I have read each and every bit of it of this post and feel like all the information is covered here. Thanks for taking your time to post such informative articles. Good one!

    ReplyDelete
  15. Anonymous23 November 2013 at 12:33

    Most accurate intraday tip for today
    BUY INDO TECH TRANSFORMERS ABOVE 75 TG-75.50/76.20/77.10 SL-74.30
    Best mcx tips provider

    ReplyDelete
  16. Eva Singh24 November 2013 at 18:51

    Can you post in hindi

    ReplyDelete

Thank u For Reading Our blog For More Details Contact 9039542248

Subscribe to: Post Comments (Atom)