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Gregg Murray wrote:
> 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.
- - - - - - - - - - - -Gregg:
You should not think of an option as a long-term investment.
Therefore don't worry about the premium loss. I rarely hold an option
position longer than a day or two, and only more than that if the
option is going up nicely and I'm just counting my profits in it.
Take a position. If it moves your way, hold onto it as long as it
does. When it fails -sell it. My OEX Puts I bought today for 4 closed
at 22 - I'm worried about losing premuim??
Dick
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