/biz/ - Business & Finance

>>19918113
Is this pic related accurate?

So if I want to minimize theta losses, buy 120 days out, sell 30 days later and buy 120 days out again?

>>8462103

No. I just usually go with longer term options because it gives me more wiggle room, and because the time decay curve is better if you go long out.

I'm not sure how long it will dump. For all we know, they might try to announce something this year. Then again, they might not.

It's not unusual for me to buy options that 2 years out and only hold for 6 months. In many cases (especially if they're in the money), they act almost like a stock or short, but are much cheaper.

>>7262993

I'm holding some ABX shares as a hedge against the end of the world. But like all gold miner stocks, they can never figure out how to make money when people aren't freaking out (even though they are literally pulling wealth out of the ground).

Long term options are good because the time decay isn't really a factor for a long time.

If you find good companies with options that expire in 2020, it's usually a good bet. If you hold them for a year or so, you can make a decent return without theta really coming into play.