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What's your options trading strategy?


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  • What's your options trading strategy?

    I love options. They are so flexible and can be used with a plethora of various strategies. They can be used to hedge risk. They can lead to loss of your entire account What strategy do you use to trade options? Here are some examples:

    1. You make a price prediction on the underlying and use an option spread to capture the move.
    2. You use statistical analysis on either the underlying or the option itself to forecast the upcoming move.
    3. You use financial modelling to identify arbitrage opportunities in mispriced options or underlyings.
    4. You use pair trading to capture convergence/divergence.

    What's your pleasure? Please kindly go into your technique for the benefit of learners. We all started somewhere.

  • #2
    Usually, I test different strategies. Maybe my system is too simple this time, but my approach contains only a few components.I always look through history at least for the last month. I don't trade when news comes out, I do not allow more than 10% of my capital to be on the market. Every trader has his own vision, I think it is necessary to test everything in order to get the picture and you become a successful trader.


    • #3
      In my opinion, doing research, calculate an opinion, and then selling premium is the best way to go because it delivers consistent profits can be replicated over and over again. Someone else may not want to put that much effort in their trades, so won’t work for them.

      So the best strategy is whatever works for you.

      However, I would say, the go to strategy for beginners of buying out of the money call options is probably the worst strategy.


      • #4
        It helped me to determine my trading strategy using the IQ Option broker's demo account. During its use, I was able to test different strategies in working with different assets and draw appropriate conclusions. I am glad that this learning process on trading platform was carried out without risk for my own funds. I recommend this approach to everyone!
        Last edited by leinsnick; 10-05-2020, 05:23 AM.