Price decay is part of the dynamics however "in th

Price decay is part of the dynamics however "in the money" calls or puts do not decay much at all. Out of the money calls and puts have more decay, however, if the calls or or puts get into the money and the stock continues to move in the right direction, the return is significantly higher. It's all risk versus reward. To me options are much less risky than stocks, especially when you utilize spreads. Stocks you need to invest much more money than in options. Options can be very lucrative and rewarding when you have done your homework on the underlying stock. I still own many big board stocks and when they jump up in price and become overbought, I write covered calls to ensure I lock in gains. Covered calls on big board stocks allow for downside protection and minimize the risk. The problem with microcap stocks is the only way to minimize risk is to take profits often by trading them. Big board stocks with options utilized provide income and hedging protection. Calls and puts by themselves are great too because the amount of money at risk is far far less than what you need to invest in the stocks themselves.

PC

My Favorite plays are on the Nasdaq DIP and RIP Board http://investorshangout.com/NASDAQ-DIP-and-RIP-87909/
My Favorite Paid chat room with amazing chart setups is The Trading Stock Lounge http://www.thetradingstocklounge.com/