>>562
> I personally am trying to figure out if you have both a put and a call bought, do you actually need the capital to purchase your call's stock and then you fill your put, or can you just have paid the premium for both? Can not seem to find a clear answer, some things point to one or the other.
Ok so OP is probably gone already but to answer this for anyone else, don't exercise your options. Unless you are fucking loaded, and I mean over $1 million in your portfolio loaded, you wont have the capital for this. Just buy the option and sell it if it goes up in value.
An easy way to do this is just checking the news. Lets say a company releases its earnings report premarket, and it looks bad. Buy your put options just outside of the money early in the morning when the market just opened, you know the stock will keep going down past what it opened at. I usually sell the option around 11-12 to prevent any slideback in afternoon trading, boom you just made probably 30-40% profit.
Just do this with small amounts of capital, <$1000, and use the obvious plays like the scenario imentioned. Don't try to be the rain man and predict what will happen tomorrow, you get burned that way. Just watch the news in the morning and look for obvious plays.