Options Affords Us Maximum Flexibility in Rapidly Changing Markets
As I mentioned in a previous post, bullish moves within the context of a corrective or bear market can be incredibly powerful, sucking in all the stuck shorts and the me-too longs, only to stall and reverse hard later. There is absolutely money to be mind, but it will be a survival of the fittest, most nimble and active traders.
Luckily for us, the ability to design spread trades with options affords us the flexibility to participate in any type of market environment. Are you bearish? -- there are bearish plays for that. Is Volatility high? -- there are ways to exploit it. Is the market headed into a sideways chop zone? -- Delta neutral strategies have got you covered.
In the latest episode of the Trading With @Chicagosean Podcast, I tackle the need to be flexible, the challenge of adapting to fast changing markets, and some strategies I expect to employ if we are in fact about to be entering a sustained period of volatile chop and/or a declining market. Have a listen here, it's only 10 minutes long:
You can subscribe to the Trading With @Chicagosean podcast here.