To be mechanical in trading, it is critical to have a solid foundation for the setup of a trade. Check out today's segment where the guys discuss this topic and hash out the steps they take before hitting the send button.
Factors to consider include:
- Develop assumption
- Consider prevailing Implied Volatility environment
- Identify time frame (expiration month to trade)
- Risk profile (Delta)
If you are looking to improve your mechanics this is definitely a segment you are going to want to check out!