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Stocks & Commodities V. 38:09 (6–7, 16): Explore Your Options by Jay Kaeppel

Stocks & Commodities V. 38:09 (6–7, 16): Explore Your Options by Jay Kaeppel

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Explore Your Options by Jay Kaeppel

COMBATTING TIME DECAY IN OPTIONS

I like to trade on a short-term directional basis. I would like to use shorter-term options to reduce my cost but I know that buying calls or puts with little time left until expiration invites a lot of time decay. Is there a reasonable alternative?

When it comes to option trading, there are always alternatives. The key is understanding the tradeoffs and the unique risk/reward nature of each alternative ...
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