Explore Your Options by Jay Kaeppel
COMBATTING TIME DECAY IN OPTIONS
I like to trade on a short-term directional basis. I would like to use shorter-term options to reduce my cost but I know that buying calls or puts with little time left until expiration invites a lot of time decay. Is there a reasonable alternative?
When it comes to option trading, there are always alternatives. The key is understanding the tradeoffs and the unique risk/reward nature of each alternative ...