Replies to post #3795 on Options Wonderland

[3xBuBu]

TG, when you play pennies
you can hold awhile if it fall back.
When you play options, time is your enemy. You need to in and out fast and don't be greedy, in addition, not afraid to take losses

STZ looks promising, but some pull back will hurt you, so I would play May's call instead

[CoolHandLucas]

For charts that look like STZ, and if I know I want in on the appreciation and I am confident it is going to happen, I will look for an at the money call 2 months out, WB's May idea is solid, and then wait for a good entry point. IMO, right now STZ looks primed for a profit taking raid from buyers 3/5 to now and that will bump the PPS down some to give you a good entry PPS lower than today's. Just my style. I do not like to chase a good thing and just be patient for the entry and let them come to me, they usually do and if they don't you lost nothing but potential appreciation and saved yoursefl from a pullback. Good luck, patience will be your friend, but the patience has to come before the buy, not after. After the buy if things turn sour, have a fast sell finger.

[nofluffstuff]

The Game, Why I wouldn't play options on pennies:
Time decay --- you may be right but if it sits for two weeks you lose it all.
Local news --- one unanticipated announcement can bounce the correct trade the wrong way fast.
Liquidity --- if you have much money to put in, it will be hard to get filled. And hard to get filled on your way out!
For the above reasons I feel the options on the Q's are the best bet - under normal circumstances.

[3xBuBu]

Game, good call on STZ on March 24
April 20 strike calls was at around .90 cents then,
but now is at 2.00 for 100% gain
keep more thoughts coming :)