I don't trade options...yet....just equities and futures. Volatility Breakouts essentially involve taking a measure of normal stock behavior, then searching for abnormal behavior. WHen you find it, you determine direction and run with it.
Mean Reversion, involves searching for over valued/under valued securities, and sell/buy them with the expectation that the values will come back in line.
BOth strategies have their strengths and weaknesses.
Good trading!
Mean Reversion, involves searching for over valued/under valued securities, and sell/buy them with the expectation that the values will come back in line.
BOth strategies have their strengths and weaknesses.
Good trading!
