What do you thik about these 3 options (LEAPS)

[DesertCat]

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Cat, I assumed he meant he was looking to BUY those options.

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Okay, well that makes much more sense. I guess I've been pondering (way too much) the idea of selling puts on stocks I'd like to own. Still can't make the math work.

[Paluka]

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I don't buy or sell options because they never seem to make sense.



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I'm not sure what you mean here. Option prices are derived from mathematical models which assume certain inputs. Are you saying you don't understand the model, that you don't know what the inputs are, or that you disagree with the inputs?

[Sniper]

Cat, hint... try running the math on shorter term options.

[DesertCat]

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Cat, hint... try running the math on shorter term options.

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I have.

Nov. KO $30 Puts 5 cents. 5 Cents! $35 Puts, 10 cents! Not even close to worthwhile.

[DesertCat]

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I'm not sure what you mean here. Option prices are derived from mathematical models which assume certain inputs. Are you saying you don't understand the model, that you don't know what the inputs are, or that you disagree with the inputs?

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I understand the model and the inputs. I'm just struggling to come up with specific opportunities that make +EV sense to me. Note I'm primarily a long term investor looking to use options to get in and out of positions I hold.

For example selling puts at a price I would like to get in at, when current prices are a little too high.

[Paluka]

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I understand the model and the inputs. I'm just struggling to come up with specific opportunities that make +EV sense to me.

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The only way to get +EV with an option is to sell it for more than it is worth, or buy it for less. Everything else is just hedging.