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Let’s
get real. Getting real in
dealing with cheap options means we are going to look at many different
angles and compare versus buying ‘safe’ options many months out as the
options ‘gurus’ tell you to do.
Many
of these options ‘gurus’ tell you to buy options with many months
worth of time with no direct correlation to a particular trading strategy,
except ‘buy and hope for the best’ – the most commonly employed
“trading system” in the markets today!
These
options ‘gurus’ may also be telling you to buy many months out so by
the time your options expires for a massive loss, it’s way past the time
you can get a refund on their options course.
I’m
here to tell you today that you must fit the option purchase to correspond
to your trading strategy. Plus
you need to buy as little as time as possible on your options in
coordination with the average time frame of the type of price move you are
targeting.
The
notion of buying cheap options and taboo out of the options trading world
for some time now. I say phooey to that!
If you have a stock trading strategy
that is dependable and of high probability for trading stocks with decent
momentum you can profit on short-term options even against the accelerated
time decay rates.
I'm telling you, you will be impressed
with SlingShot options. You really need to come check it out. I mean come
on the price of commissions on one trade or economy slippage on your
options trade execution you can check out slingshot options. You really
need to check out the performance page.
I'm not here to tell you what to do but
whenever something good, actually good available to you as a traitor you
really need take the ‘pains’ to investigate and know if it is
something good.
Finding a strategy to trade short-term
options is really the best. Because options decay with time anyways. Even
options 60 days out decay quite rapidly and you're not going to see
reasonable rates of decay until you out 90 days at least.
It's an amazing thing when you have
options that go from $200 per contract up to $1700 per contract in about 3
to 5 days. It's an awesome experience that you really need to try
sometime.
Again there's nothing wrong with buying
options if your timeframe is set by your worst operating system at 2 to 5
days or less. The key is that your system must be very specific and
exact in its entries and exits.
Another thing is that in order to make
swing trading options all possible and easy to execute you need to learn
advanced ordering. Advanced ordering
includes the use of a contingent order. It is one of the
greatest creations and options trading for some time.
More on that topic coming soon…
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