Many traders consider options and warrants to be long term trading markets (i.e. swing and position trading), but options and warrants can also be traded short term (i.e. day trading). Trading options short term is not dramatically different from trading any other market (e.g. futures, individual stocks, etc.), but there are a couple of options specifics that need to be taken into account.
My short term options trading article provides a discussion of short term options trading, and explains how various options and warrants trades can be used to make various underlying trades. Trading options and warrants short term is most suitable for stock index and individual stock traders, so even if you are not usually an options trader, trading options short term could be a useful addition to your trading.
Saturday, August 29, 2009
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