Question Is it ever OK to buy pds/cds beyond Friday? I like buying spreads for the safety it provides, but last week realized a mistake was buying pds that expire Fri when I should have bought calls further out. I allowed my desire for “safe” spreads to cloud my judgment and got myself trapped, instead of just buying longer-term puts. Thx.
3 days ago
Yes. I you are looking for a move that could take longer to unfold you can go out another week with CDS/PDS. We tend to wait for the move and then take the position when we feel the momentum will continue. That is why we prefer this exp for PDS/CDS. This week’s also moves better.