Options Trading Lessons 10/06/14

• Keep position sizes small ($1k for me), as the risk of losing entire position is high
• Choose expiry date based on how sure you are about the move you're anticipating; chose nearest expiry date when you're most certain
• Avoid illiquid options
• Avoid large spreads (more than 5c)
• Avoid the real cheap options, they're more expensive and (even) more of a gamble
• Close positions eod - same way I won't gap nasdaq stocks 
• Sometimes it's appropriate to use puts instead of shorting when borrows aren't available
• Use more with $50+ stocks where it allows you to leverage your buying power