Last year I traded as little as 2 and as much as 80. My average is probably 20 contracts per trade. I sell options much more than I buy them. Monday I bought some Monsanto call options for 1.7 per contract (april 80 calls), Tuesday afternoon at the close they were worth 85 cents per contract. In 24 hours I lost 50%!!! That's why when I buy options, I normally will only buy 1% of my total bankroll on a trade because when buying options, especially out of the money, the odds are pretty good they will expire worthless.
n e tips
i just got into 2 this morning slef...i play options almost daily but moe so long term one....4-9 months out...
bought MU (micron tech) 12.50 jan 2012 calls and mgm (mgm) 15.00's for jan 2012 as well.....
not to heavy 5-20 contracts a trade is my avg
n e one got n e good leads/tips on n e
i just got into 2 this morning slef...i play options almost daily but moe so long term one....4-9 months out...
bought MU (micron tech) 12.50 jan 2012 calls and mgm (mgm) 15.00's for jan 2012 as well.....
not to heavy 5-20 contracts a trade is my avg
n e one got n e good leads/tips on n e
I use spreads rarely starting out. I often turn winning trades into spreads if I want to reduce risk. My best trades are selling naked options and most of the time naked puts on stocks I wouldn't mind owning. I try to hit a lot of singles. I also sell tons of covered calls on stocks that I own.
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