Do you know how professional traders ride options into expiration?
And to be clear, I'm not talking about 20-cent options that are $5 out of the money (OTM) on the underlying stock.
I'm talking about when you have an options trade that’s in the money (ITM) — or when the price of the underlying stock is higher than the strike price of the option.
A lot of trading books and “experts” will tell you to close out ITM options the week of expiration... Or to close them out early before they expire because of time decay!
And I’m here to tell you, that’s all junk...
When you’re trading ITM options and approaching expiration, don't worry...
Because you're basically playing the stock itself at that point.
Don’t Let Wall Street Trick You Into Running Away From Winning Trades October 22, 2021
So far, this earnings season and the options manipulation we’ve seen is exactly why traders need to know about a volatility crush. Just take a look at Netflix...
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