Options Trading Strategy
August 27th, 2011Successful traders base their options trading strategy upon the results of their fundamental analysis and technical analysis of the options markets. The trader chooses which options exchange to trade options in and which underlying equity to use for options trading. Then the trader uses technical analysis tools such as Candlestick chart patterns to understand options volatility, trading volume, and underlying stock market trends or movement of commodities or futures. The trader chooses an options trading strategy based upon which direction he or she believes the value of the option will go, using a combination of buys and sells on puts and calls.
The price of equities underlying options contracts go up, go down, or stay the same. Read more…
Tags: Options Trading, Options Trading Strategy, Strategy, Trading Strategy