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• Compare Option Strikes With This by Tim Zurick

  ARTICLE SYNOPSIS ...Compare Option Strikes With This by Tim Zurick How do you compare options with different strikes, margin requirements, and expiration dates? Here's a tool that will help you make that decision. More bang per buck: Many businessmen will tell you that there is no more important factor in financial decision-making. Option sellers face a specific version of this decision: How should limited margin dollars be allocated among possible trades to maximize return on investment? Figure 1 frames the question. Is option trading an investment? Perhaps not; in several respects it is a unique class of trad...

AUTHOR: Tim ZurickDATE: NOV 2007SUBJECT: Options