options query, page-12

and not just that pisces, lets say the SP continues to raise up, but the options goto 2c difference in price. Do you sell then? Do you hold? Are the options still good value? Do you sell and buy heads?

Unless you have established your game plan or are experienced enough to make it up on the fly, you gotta be careful. Because if you invest in options and sell at a dumb time, (because you dont understand how they work) you could make less than if you bought the heads and maintained a clearer strategy. You could sell the options because they are close in price to the heads, only to see the heads go up hugely in value, pulling the options up with them. This would then decrease the amount of money you made, even though options were meant to make you more!

Anytime you add another variable into your trading, you gotta understand how that affects the market, how it affects your money and how it affects you.
I have no doubt GS 'gets it' and knows what he is getting into. Some of these people who dont know how options work nor know how to find the expiry date... well, they scare me a little bit! Im done on the topic as well. I've rattled on enough about this topic too.