Tuesday, June 30, 2009

[TheOptionClub.com] how do you pick your options?




I was looking at trading GG (naked short puts) for August. It's an expensive option, premium is 1.40 for a 33 put (as of this morning of course). now, you could trade F, 6 august put, make .65 instead and do 2 of them for the same premium as 1 GG. How do you pick in such a situation where you have something very expensive (risk more) vs something relatively cheap? (I hope this makes sense)

thanks in advance

Becki Kain

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