When you do short duration options, you’re not just betting on direction... you’re betting on direction, timing, & volatility all at once. Miss any of those... you’re smoked. (you likely will unfortunately) With 1+ year options on great businesses at good prices with solid EPS growth, I only need to be directionally right over time. (which is 10x easier) That’s where the edge is.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Why most people fail with options:
When you do short duration options, you’re not just betting on direction... you’re betting on direction, timing, & volatility all at once.
Miss any of those... you’re smoked.
(you likely will unfortunately)
With 1+ year options on great businesses at good prices with solid EPS growth, I only need to be directionally right over time.
(which is 10x easier)
That’s where the edge is.