Options Geek

I use a variety of techniques to take advantage of, and profit from, the different states markets can be in.

Markets can basically do 3 things:
- Go up
- Go down
- Chop around in a range

The rate at which a market might move up or down can certainly vary (and thus factor into the selection of the type of option strategy I’ll use), but in general — those are the 3 market states we can observe.

Generally, I limit my focus to “income generation” strategies, and try to engineer trades that take whatever the markets are giving at that particular time.  That being said — I don’t try and shoe-horn a particular strategy into non-compatible market situations, and will also utilize more aggressive directional strategies when the situation warrants it.

Over the years I’ve found that when I focus on markets that are setup well for premium collection strategies, my winning trades — and thus profits — will be a lot more steady and consistent. This approach, along with strategically timed directional trades, has served me quite well over the years.

Selecting “the right tool for the job” is a critical factor to consider if your goal is to successfully trade futures and options markets.