Options In Trading Ranges by David L. Caplan
ARTICLE SYNOPSIS ...Options In Trading Ranges by David L. Caplan
Options have a natural appeal due to the limited risk aspect for the options buyer, but there is a tradeoff: Because of the time decay factor, options lose value. However, as David Caplan, publisher of the Opportunities in Options newsletter, points out, you can take advantage of the time value decay characteristics. Here's how.
Option purchases and futures trades are only successful if the market moves in the direction predicted
(without the trader being stopped out first, naturally). In addition, option buyers have to worry about time