One of the great things about options trading is the flexibility afforded to traders to combine multiple contracts, of the same or differing expirations, long or short, to express unique ways to participate in whatever thesis we might have about the future direction or opportunity the market is offering.
Depending on the type of trader and person we are, this menu of choices available either incredibly excites us, or it overwhelms us with analysis paralysis.
I usually fall into the first camp, excited about the choices. But I’ll admit to sometimes feeling myself unable to make a confident strategy decision.
So when opportunities like today’s trade come along, I get pumped. This is because today’s trade is my favorite kind of setup. Both for the potential of the move and the simplicity in how we can play it! [Read more…]