Use a longer option when:
- You might feel that a stock is going to keep on moving in one direction.
- You are aiming to have a bigger profit from an option. Be advised that this might entail a higher premium due to the added potential for a long option to be worth more.
- There does not appear to be any significant patterns of the stock. Any patterns that the stock goes through might be continuation patterns at this point, thus ensuring the value of the stock will keep on moving in a certain direction.
Whatever happens, you need to look carefully at what you are doing when getting an option to work for you. Plan everything ahead of time so you have a clear idea of what will happen in the market.
