In options, perfection is required, but something always goes wrong

by sabitha 2010-12-01 12:19:50

In options, perfection is required, but something always goes wrong

You must correctly predict the stock's move and the time during which it will make that move. You must buy the option at the price your calculations are based on. Then you must sell at the right time, in the right way, having chosen the right method (stop-loss, limit order, or market order at time of sale), and your order must be executed rapidly and correctly by your broker and the options exchange. In too many option trades, some part of it goes wrong.

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