Awesome article. I wondering if there was a follow up study done.
Now the easy thing to say is.. well, you buy options, then sell before expiration... yet... someone does buy the options. End of the day, most expire worthless.
To such extent, this is why over time, writing calls, and doing covered calls, calendar spreads gives you a higher return over S&P, with a lower standard deviation, or Risk.
For buying calls, close them out. =) Follow a system, and dont dump all your money into plain ol Calls. Or if you will, make sure they are at least IN THE MONEY, or LEAPS.
They are lottery tickets... and last I checked, the states doing the lotteries are not going out of business.
Heck... Just ask anyone who is hanging on to SKF out of the money calls.
this is not to say dont speculate, but it is to say, dont have speculation BE your investment plan.
Depending on age, risk tolerance, goals, speculative stuff can be up to 25% of portfolio.