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Out-Of-The-Money Or In-The-Money Spreads? How To Choose
Thursday, March 26, 2015 - 12:31pm | 986Option traders tend to toss around the terms out of the money and in the money a lot. And although the definitions are relatively simple, the impact each has on trade results can be quite complex. Suppose you have a bullish bias on a stock or index, and you’re contemplating selling an out...
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When Near-Expiration Long Positions are Advantageous
Tuesday, June 19, 2012 - 5:21pm | 901The time to expiration, and cost of the option are the two factors every options trader struggles with and has to balance. Close to expiration, it's difficult to get the kind of price movement you need for profits, given offsetting time decay. Far from expiration, option premium is quite high....