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Michael:
I agree with Joe. I would buy in-the-money options. I think a general
philosophy is to sell as much time premium as possible and buy as little as
possible. This way, time is not eroding your investment as much
percentagewise as if your position is completely composed of time premium.
Also, when you're in the money, your deltas are higher so you're capturing
more of the move percentagewise.
>> > For indices, should I buy puts in the money or out of the money?
I'm pretty sure Schwab will take stop orders on options.
>> > Because I am in many issues, does anyone know of a broker that will take
>> > stop/loss orders for short sells and or options???
>Joe Frabosilio writes:
>
>For me "Out of the Money", is what I call the Whisper of Death. My past
>exp. with out of the money is always a loss. I also very seldom buy at
>the money.
>
>The key for me is always "in the money".
Good trading,
Gregg Murray
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