Most option traders are like gamblers in Las Vegas. Full of hope and with an empty wallet after the action. But there is an alternative. What if you were treating your options trading as a business rather than a gamble?
Trading options does not necessarily mean to buy out of the money options, and dream of millions, only to see their value vanishing in most cases. Instead, one can use them for hedging. But the best way to play options is to buy options at the money and ride the momentum, if there is some. Beats all option combinations…
There are combinations of stocks with options or with options alone. These things are difficult and complex, even not completely understood yet, and some of these combos are more interesting than others.
But the secret key is something else, namely techniques to get a favorable price when setting up the position. After the initial entry there are situations when the whole position can be adjusted according to market movements. Only the conjunction of these two things will make you money. Of course, there is more knowledge required for running an options business than for treating options as lottery tickets.
There are two guys offering comprehensive material about the options market and its hidden possibilities. They claim that they know how to get the cheap market entry and how to strengthen a position with the right adjustments. The result is a trading style that works independent of the market direction:
If you don’t want to play roulette while still enjoying the high leverage of options, doing a more thorough calculation may be the way to go.