Tuesday, December 13th, 2016

Options Trading Question?

HiLet’s say I’m Analyzing a stock. 1. There Has Been a strong uptrend the last 6 months2. I have the rough gradient, so I roughly know What It Should Be priced at if the trend continues. However, I do not know how confident I beShould Should I pick a bullish call option strategy or due to expire soon? 1 month? 2 months? 3 months? I can roughly predict What Price Would Be realistic timeframe for each ‘based on my current gradient. My question is Which timeframe Should I pick? Thanks

Comments

2 Responses to “Options Trading Question?”
  1. Ronald S says:

    4 to 6 months is best – 1 to 3 months, out wacth out for time and price deterioration – best to use if you believe a catalyst will move the stock

    Note:There are a few signals on the daily chart of the S&P which argue that a larger correction could be developing. Form March 3, 2011: Goldman’s John Noyce

  2. Barry789 says:

    Keep in mind that the charts for various time frames will be similar, only the scale will change.

    So what you are asking, in essence, is what combination of time frame and scale is best for me, not which time frame alone is best.

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