Quote:
Originally Posted by lewdog
Small hedge. Basically only play I want to make until market stabilizes.
I know what owning a contract is.
I disagree. Im looking to profit without having to expense large positions of capital to do so. I’m not greedy with my call options. I look for a spike and sell to close position for profit. Just did it with SLV in early February for a $250 profit in a few weeks.
I’ve closed 80% of the calls I buy for profit as I don’t buy tons of really short term calls and buy many close to in the money. I’ll pay the premium for increased duration and close them on spikes
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If they’re close to the money they’re expensive. And they’re still on contract sized options, right?
But if it really is a when not if thing and your timeframe is 4 months, there shouldn’t be a ton of capital outlay. You can buy positions on margin. That’s why it’s called a margin call when you’re on it.