Options Strategies

How do we pick the correct option for the correct situation? Are there any Options Strategies we can use?

Some question we ask ourselves prior to opening any open position are:

• Is there a Steady Trend? (How volatile is the underlying stock?) 

• How Long do I plan to hold this option? 

• What is the option’s Bid-Ask Spread? 

• What is the option’s Open Interest like (liquidity)? 

• How much Risk can we take on this trade?  

Next: Steady Trend ...