Wednesday, June 06, 2007

Best time of month for options

From Adams Option Blog (link)
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Well, as a general guideline I would time option purchases around this. In other words, the end of the week post-expiration is the best time to buy options.I would confirm this anecdotally (with a big caveat being the timing of holidays).

Conversely, the best time to net-sell options is early in a calender month, about a week before expiration.

Again, I am going to insert a caveat here. These are normalized options with 30 days of duration. I wouldn't go crazy selling near month options with a week to go. It's a VERY risky strategy.

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