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Ep. 58: Kirk Du Plessis: Options Strategies To Reduce Risk In The Coronavirus Stock Market

Investing With IBD

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How to Be an Option Buyer in a Short Period

When you are trading shorter, let's say short premium strategies so you're option selling net. Somewhere around 30 to 60 days ends up being pretty well. When you get inside 20 days, it just doesn't work out as well. And is that maybe because the pricing is even more off during that short amount of time? I think it could be a factor of like illiquidity. So you got bigger spreads, right. The shorter contracts. And then you also have a lot more gamma risk during those time periods. They're more likely to just either be really profitable or really not. And nothing in between.

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