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Re: -blklabs- post# 1358

Thursday, 01/07/2010 12:29:17 PM

Thursday, January 07, 2010 12:29:17 PM

Post# of 2276
Be careful. Just because you believe a stock will go up does not mean it's a great stock for CALL option contracts. Look at that liquidity! You need to have an escape route. When a strike shows less than 1000 contracts as available, what do you will happen to the spread?

Many times we need to just sell at the bid and if there is no liquidity in the contracts, we sometimes sell well below it's true value.

Just food for thought.


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