My two biggest factors to select an expiration are based on ...
My two biggest factors to select an expiration are based on the following:
ATR - average true range, how much does the stock move on average over the prior 14 days? based on this how many days would it take for a selected strike to be ITM (in the money), select an expiration at least double to ensure it has plenty of time for turbulence.
Trend/cycle- does either the sector or ticker have a recurring pattern, and is it clearly in either a peak or trough? How long is a typical cycle? select an expiration 1.5x the typical cycle length.
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