Wednesday, May 9, 2007

When to buy option for day trading?

If a stock rises or downs greater than 40%, then when to buy option for day trading?

Only the volatile price drop will happen AND I cannot short the stock, then consider to buy the put option.

One situation is the stock rise for 40% in the pre-market, and then rise to 100%. And I cannot short. Then I may consider to buy some put.

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