Weekly Options Strategies
A lot of weekly options traders as well as options traders who utilize weekly options strategies like the iron condor, the butterfly spread, double diagonals, and calendars using the standard month options – have the mindset that they should just put these trades on every single month like clockwork regardless what the market is doing.
Weekly Options Strategies – Sniper
What these option traders are doing is they are taking a ‘probability’ approach to trading – and perhaps trying to take as much ’emotion’ out of the decision making process as possible. And trading weekly options strategies this way can work – as long as the options trader stays disciplined and has a good adjustment plan ready to put into place if needed.
However – another way to approach these types of weekly options strategies – with either weekly options or the standard monthly options – is to instead take more of a ‘sniper’ type approach. Instead of just slapping on trades at the same time every month like a robot – another way to play is to instead just sit back and wait and watch the market – for the ideal time to enter each of these types of trades.
Weekly Options Strategies – 3D Trading
This type of approach may require an added skill – or a bit more time dedicated to watching certain levels or area where it would be most ideal to enter into a trade – but the reward could outweigh this as profits can be realized much much faster with a trade entered at the most ‘ideal time’ and many could argue that this might be a safer way to trade these types of option income strategies in times of wildly high volatility like we saw recently in August and September.
The basics of how it works simply involves monitoring certain option trading ‘gauges’ such as volatility levels and then waiting for the ‘best’ time to enter certain weekly option or standard monthly option strategies based on happens on those volatility charts.
This can be extremely easy to do even for the beginner option trader – and even fun – as this type of option trading introduces a ‘third dimension’ type element to trading – and when done properly can produce consistent and shockingly profitable and very fast results – many times much faster than waiting for your profits from just the theta eroding out of the options. Trading weekly options strategies this way not only takes advantage of the normal theta decay – it also harnesses the power of movements in volatility – which when combined can supercharge an option trading position.
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