O'Reilly logo

The Intelligent Option Investor: Applying Value Investing to the World of Options by Erik Kobayashi-Solomon

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 9

GAINING EXPOSURE

This chapter is designed as an encyclopedic listing of the main strategies for gaining exposure (i.e., buying options) that an intelligent option investor should understand. Gaining exposure seems easy in the beginning because it is straightforward—simply pay your premium up front, then if the stock moves into your option’s range of exposure by expiration time, you win. However, the more you use these strategies in investing exposure, the more nuances arise.

What tenor should I choose? What strike price should I choose? Should I exercise early if my option is in the money (ITM)? How much capital should I commit to a given trade? If the stock price goes in the opposite direction from my option’s range of exposure, should ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required