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Important Issues
In Buying Naked
Options |
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You should have
solid reasons when
you buy a
naked option.
However, if at some
point you find that
those reasons are no
longer suitable,
then you should cut
your losses and move
on.
Since
options
generally have
limited losses
associated with
them, the staying
power on a given
stock is better in
options
trading than in
stock trading alone.
Finally, if you want
to maximize profit
in a short term,
then you could buy
far
out-of-the-money
options. However,
for long term
success you need to
avoid this against
the odds strategy. |
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