In today’s Option Strategy we’ll run through a trading plan for the next day. While the market has moved in a strong downtrend today, a number of stocks are demonstrating the kind of weakness we might be able to cash in on through options.
This will introduce us to a diversified option strategy instead of a single stock or index focus. Right now, remember that option premiums are very low with a volatility expectation that is just 18%, and going short options involves considerable risk, both through adverse reversals of the trend, or through an increase in time value due to an increase in volatility expectations.
Now, tell them about it: