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Timing Your Trades
When you are betting on the direction of a stock/commodity/futures price, and using an option, then that underlying vehicle has to move within that time frame. That is what options are all about - not just being right, but being right in time. For an option to pay off, the stock has to make a significant move faster than time value evaporates. That is the hook, the bait, the lure. And to add to the challenge, the closer an option gets to expiration, the more quickly its time value declines.
It makes perfect sense. If the market lets you bet a penny instead of a dollar and offers big rewards with leverage, too, there has to be a downside somewhere. The downside is time. It’s the great leveler in options.
Timing Your Trades Articles on Smart Profits Report:
Trailing Stop Strategies: How To Avoid It A $190 Million Portfolio Mistake
Market Entry Strategy: Three Ways To Grab A Better Entry Price Than "At The Market"
Time Stops Strategy: Your 10-Day Profit Test
Timing Your Trades: Two Ways to Expand Your Thinking And Your Profits
A Lesson On Time Decay And How To Go In the Money For Top Buys
Time Value: With Options You Need to Be Right On
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