Why is longer expiration on a put option more preferable than a shorter expiration?
Asked 4 years ago
It seems obvious, but I want to know if there's something I'm missing.
Avik Das
Monday, January 17, 2022
Yes, longer expiration on a put option is more profitable because a trader gets more time for the trade to be profitable for you. However, your option is going to be costlier with time. To have success in longer expiration, you need to find the right balance between time and success to make it profitable.
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