But hang on a sec! You might be thinking that you have all the information you need... and if I have all the information I need... there is no need to hold off making that decision. Right?
The problem with making a decision early is that you don't always know what you don't know. By buying some extra time... by deferring an option until closer to its expiry... you create an opportunity to learn MORE information... information you probably didn't even know would come available.
You might even end up with some new options... and guess what... those new options have value too! And that is the real rub... it's not just the value of the of the options that you have now... it's also the value of the options that have not yet presented themselves. There are times when it makes sense to decide early... but make sure you know why. Fear of the unknown is not really a good reason to decide early.
If you are deciding early because you think you know everything... you might be closing off options you didn't even know you had.
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