/biz/ - Business & Finance

>picking the right theta on value plays
This was just a bunch of nonsense sorry. I meant picking the right amount of theta based on catalysts / products / pipelines. And then use value plays near a support floor ("surely the stock can't go ANY lower" type stocks) to minimize losses as well.
You see, think of options as a way of making a statement about the stock. You are not only trying to make a statement about the direction of the stock, but the velocity of that stock going in a certain direction. People who screw up with options and get scared off by them fail to understand you are making a more nuanced statement about your stock pick because you are also trying to account for that stocks velocity. If you think of options in that sense, playing options can be a lot easier.

I am making a STATEMENT about CRBP filling the gap again based on it's VELOCITY. That is why I chose April 4c instead of February, but not CRBP LEAPS....think about options as a STATEMENT.