I don't get it, let's assume there are people who have an edge doing short term (up to 3 months) directional trading ... Why can't they use options to help them better structure/execute their strategy? Many people make money simply on noise (Overreactions that have no fundamental significance) and options seem to be very good at noise exaggeration.
Thanks, @Global OptionsTrades. I am not understanding ... Your trading is TA based and is automated enough to be back tested?
Yes, but TA is not rule based - very subjective.Any strategy that is rule-based can be backtested.
That's not correct. He was buying calls with the premiums he collected on selling puts. The strike of the short puts coincided with technical support levels at which he would not mind to get assigned. So after a big sell off, he was looking for at least a quick pop in price. However, if the stock plummeted even further, he would be long the stock at very oversold levels. Which is what swing trading in a bull market is anyway, imho.I just skimmed through the video that you originally posted, and note that the presenter is advocating only selling options