Why Two Day Options Are Not Where It's At
If you just jumping into this blogging site for the first time I want to say that this blog will be one of the most unfriendly bogs to read. You are catching a snippet of a series of blogs about short term option trading. I have often said that options with two days to go are my least favorite options of the week to play. They are "flip-of-the-coin" situations with the passing of time values eating up a substantial part of the option's premium. Monday morning one week options, Tuesday afternoon options which expire on Friday and Wednesdays options which also expire on Friday and which often benefit from weekly directional shifts are free of these time value worries. In other words, don't be holding Wednesday options going into Thursday. One more don't. Don't open up positions on Call options which tend to be a bit more expensive than Put options on Thursday options which expire the next day. Yet having said that sometimes in the last four or five seconds of tr...
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