Episode 27 - Building a larger option position

Episode 27 - Building a Larger Option Position Efficiently

Description: In "Episode 27 - Building a Larger Option Position Efficiently," Koen Hoorelbeke and Peter Siks explore the strategies for building larger option positions over time. This episode is essential for traders looking to optimize their entry points, manage costs, and scale their options positions effectively.

Key insights on building a position gradually:

• Gradual purchasing: Instead of buying a large position all at once, consider spreading the purchase over time to secure a better average price.
• Price discovery: Enter orders at different times of the day to take advantage of price fluctuations and potentially lower costs.
• Scaling in and out: Splitting orders into smaller chunks helps optimize entry and exit points, minimizing the risk of overpaying or missing savings.

Managing costs:

• Small savings add up: Saving even $0.01 or $0.02 per option contract can accumulate significantly over time, especially with larger positions.
• Bid-ask spread attention: Patience and focusing on bid-ask spreads can help avoid unnecessary costs.

Conclusion: Gradually scaling into larger option positions can help traders secure better pricing and avoid paying higher premiums. By using strategic patience, traders can accumulate significant savings and improve their overall profitability.

In "Episode 27 - Building a Larger Option Position Efficiently," Koen and Peter provide valuable insights and practical advice for traders aiming to manage larger option positions with precision. Tune in to enhance your understanding of position-building strategies and optimize your trading performance.