10 Commandments for Successful Options Trading
Ken Trester, June 25, 2009
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Commandment #8: Buy Out-of-the-money Options
In general, out-of-the-money options normally have lower prices, and, as a result, they also tend to come with less risk.
But don't buy them too far out of the money. It's one thing to bet on a stock moving, but it's a fool's game to expect an unrealistic jump (or drop) within a short time frame.
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