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That emphatically didn't work out for me with Valiant. Remember, options have expiries. And also it only makes sense if market implied volatility of your option
by paul_milovanov 8y ago
That emphatically didn't work out for me with Valiant. Remember, options have expiries. And also it only makes sense if market implied volatility of your options contract is way below the upside move you expect.
I.e buying calls at 50% IV when you only expect a 30% move before expiry is... suboptimal.
In other words, there's no substitute for truly knowing what you're doing when trading options. (Learned this the hard way, AMA)
- paul_milovanov 8y agoIt did work out for me with GEO (doubled my position on the sharp drop) but I bought stock because I had no idea when it might rebound. Options are far less forgiving if you're wrong on timing.