Explore Your Options by Jay Kaeppel
I would like to enter long-term bullish positions on a variety of stocks and ETFs, however, I have a limited amount of trading capital so I cant buy a lot of shares. I would like to consider options, but I am concerned about the potentially negative effect of time decay on longer-term options and well as the effect of changes in implied volatility along the way. Is there anything you can suggest?
One possibility that fits this scenario well is referred to as a ratio backspread ...