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Michel:
If you want an option that "mirrors" the market, you still want to buy
in-the-money options because an ITM option will move much more closely,
percentagewise, with the underlying's movement than on out-of-the money
option. This is what delta is all about.
If you truly want to mirror a stock's movement, though, you might want to
consider synthetic positions. For example, if you are bullish on a stock,
you could buy a call and sell a put at the same strike and expiration date.
Do the opposite for a bearish outlook.
Good luck,
Gregg Murray
>I just want to long or short a stock/index and
>have an option that mirrors the movement of that instrument.
>
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