Thursday, September 9, 2010

How & when I use options!

I trade options

-only when I have to take a position for maximum 3-4 days

-when expiry is atleast a week away

-when I want to minimise risk against overnight disaster

-when i want to leverage more with same capital

I don't use options for hedging or spreading or straddling.

I don't write (i.e. sell) option calls because I consider it defensive play for the mischievous or those who use big money to swallow the adventurous traders.

Call options are wonderful tools in the right hands, rather right minds!

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