Near expiry, delta of options near to one.
The bait
--------
This gives tremendous leverage opportunity, often my entire 2 months trading profits could be achieved in the last 3 days of options expiry.
The Hook
---------
In reality my biggest losses come from near expiry options trade.
Obvious reason is over leveraged position...
Every time I dream of the delicious bait and open my mouth, I end up with painful hook in my throat :( and recovering for next 2 months!
One obvious way to solve this problem is limiting the position size to allow only 10-25% of loss of my equity.
BUT...
is there a way to eat around the bait escaping the hook :D??
What are your near expiry options trading experiences?
I have seen options expiry break traders and blow up their accounts...
are there any positive experiences with options expiry?
Pls do share your experiences and thoughts!
---
It seems market has its recurring April fool trick for greedy & dumb options traders near expiry :D every month :D
The bait
--------
This gives tremendous leverage opportunity, often my entire 2 months trading profits could be achieved in the last 3 days of options expiry.
The Hook
---------
In reality my biggest losses come from near expiry options trade.
Obvious reason is over leveraged position...
Every time I dream of the delicious bait and open my mouth, I end up with painful hook in my throat :( and recovering for next 2 months!
One obvious way to solve this problem is limiting the position size to allow only 10-25% of loss of my equity.
BUT...
is there a way to eat around the bait escaping the hook :D??
What are your near expiry options trading experiences?
I have seen options expiry break traders and blow up their accounts...
are there any positive experiences with options expiry?
Pls do share your experiences and thoughts!
---
It seems market has its recurring April fool trick for greedy & dumb options traders near expiry :D every month :D