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...