Before we can choose an options strategy, we need to formulate and assumption about the underlying.
In today's installment of Tastybites, Tom and Tony take a look at what we need to consider when deciding how to trade an underlying. The four main factor that they look at are:
- Market Awareness
- Recent Price Action
- Volatility and
Tune in as Tom and Tony explain how each of these components play a role in strategy selection and directional assumption. Plus, get a few more tips specifically geared at the traders in smaller accounts.