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Options are one instrument that is conducive to a LIMIT order for one
thing.....
the answer to your question is:
buying options: CLOSE (your risk is limited....so what if it gaps open
against you)
selling options naked (or credit spreads): OPEN (risk is much higher here,
best to put it on after prices settle down)
IMHO.
> -----Original Message-----
> From: Infowest [mailto:brente@xxxxxxxxxxxx]
> Sent: Tuesday, July 25, 2000 1:56 PM
> To: Omega List
> Subject: Which is better buying options at the close or the open?
>
>
> Hi,
>
> I've a question for you option experts. Firstly, I have bought
> and sold many
> futures options so I know about that part.
>
> What I am thinking about is this, assuming that you have to buy an option
> either at the close of today or the open tomorrow which is the
> better idea.
> (Don't bother telling me neither.) It seems to me that the price range for
> today is known and the price has had a chance to zero in so to speak.
> Tomorrow at the open the bid ask might be very wide because of gaps and
> other radical price movement.
>
>
> Thanks for your thoughts.
>
> Prosper
>
>
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