Most options traders only sell premium. Mike Butler says there is a time and place for both and knowing when to use each is what separates good traders from great ones. Selling premium works best in the 30 to 60 day window on broad-based indices where gap risk is minimal. Buying premium works best outside that 60-day window especially on individual names at multi-year lows where a LEAP gives you time without the theta decay problem.
The key framework: if selling premium do it in products where you can withstand any variance. If buying premium you get what you pay for so go further out in time and always sell something against it to reduce cost basis. Near-term long options are a losing game. LEAPs on names at decade lows are a completely different trade.
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