Picking expiration month is a matter of personal investing preference, however I rarely but current month options unless just planning to day trade them. The "Theta Burn" which is the time value loss of the option, is not significant outside of 30 days, but becomes very significant in the last 30 calender days. So when Sept Expiry comes around, I would be rolling forward from October to probably November if I still thought the trade idea was valid.
would oct calls of zsl be to close or should be nov or dec ?
ReplyDeletePicking expiration month is a matter of personal investing preference, however I rarely but current month options unless just planning to day trade them. The "Theta Burn" which is the time value loss of the option, is not significant outside of 30 days, but becomes very significant in the last 30 calender days. So when Sept Expiry comes around, I would be rolling forward from October to probably November if I still thought the trade idea was valid.
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