Friday, August 31, 2012

buying weekly options is stupid idea for consolidation phase of stocks uptrend or downtrend

these are the most dangerous for consolidation phase. Within 1 week, the value of the weekly option can go down a lot more than 60 percent.

How do you know that 6 days is for certain the stock is going to move in the desired direction. One does not know. That is the reason why there is no point in buying the weekly options when the stock is consolidating.

Another point is about rolling over the weekly options , which is again a waste of money for buying and selling transactions which can be a lot if one is buying big positions.

What a waste of time and money!!!

Weekly options is a horrible idea. Even buying 1 weekly option is a waste of money. That means selling weekly options becomes a good idea. 

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