|From: BullHorn (Rep: 0) reply to HARLUM||Date: 05/23/2020 11:49|
|Forum: Wall Street Pit - Msg #2848933 - List CLBS msgs ||Thread #674115124 (Rec: 1) |
|Re: Im pretty new to options, only doing it a few years now , question , boug...|
Tasty Trade has excellent free videos on options and other stuff. As a general rule, you probably want to be a seller of contracts on a thinly traded stock versus a buyer. You can take either side as a seller and you end up profiting off theta decay versus losing it. Example, you want to build a position in something volatile and thickly traded like VTIQ. You enter the trade by selling OTM puts to get long, then sell weekly or monthly (not sure which is the case on VTIQ) calls to collect premium and use the funds to buy more shares (if you don't get called first).
| Reply to HARLUM - Msg #2848927 - 05/23/2020 11:06|
Re: Im pretty new to options, only doing it a few years now , question , bought a few lotto calls here but I noticed options on all pricing have almost no volume and the spreads are crazy , if good new were to hit would the options still be rewarding or am I better off sticking to the commons in this scenario
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