Yo Pit Crazies,
I teased some free video content yesterday because I want all of you to be able to pop in and check out some of the goodies you might normally not have access to.
(Of course, our Pro students live life in the fast lane – and get everything, all the time.)
Now, if are new to Option Pit, I’ll divide our services into two basic parts:
- Long Options and Two-Legged Spreads
- Market Neutral Spread Strategies
This week, I’ll outline each Option Pit Product and the style it specializes in, and the major differences between them this week
Different Trading Strategies
There are as many trading strategies as there are stars in the sky.
OK, maybe not that many, but you get the idea.
I have been trading options for 30 years, the first 15 as an exchange member and finally running my own trading firm.
And, quite unbelievably to me, I have been teaching retail traders how to become ace option traders for 10 years here at Option Pit.
Students seem to like it!
What sets us apart at Option Pit is we teach a wide range of pro techniques we learned and developed on the floor as exchange members or on a trading desk.
When it comes to options trading, there is no substitute for real experience.
Mark Sebastian, Bill Griffo, Licia Leslie and myself have more than 100 years combined as pros.
We’ve seen it all – and we have different areas of focus, from volatility to charts to bonds.
That collective knowledge is a benefit to our members.
Here are three big factors when it comes to option price movement.
- Underlying move
- Volatility move
Any option trade will lean on one or all of these three to make the bucks.
You need to know which – or which combination of the three – matter most to your trade.
In my courses, I break things down further:
- Directional strategies buying options: volatility sensitive
- Directional strategies buying spreads: much less volatility sensitive
- Market neutral strategies high theta: very sensitive to the passage of time
- Market neutral strategies low theta: relatively insensitive to the passage of time
Each product manager is sensitive to where volatility is for each trade, so that helps decide on a single contract or spread. That is a bread-and-butter trading concept here.
Trading Legion, Volatility Trading Club, Option Pit Pro are all “next level” products because time and volatility are the main drivers of profitability for trade set up.
The trading concepts here are Accelerated Decay and Arrested Decay. Think of it as making the option do what you want them to.
There are lots of ways to trade options but traders have to understand how they work first.
So you may be a member of enjoying one of the programs I mentioned in the first set. If so, enjoy – and make sure to explore them all.
And if you’re ready to “level up” in your options trading be sure to check out Trading Legion, VTC or Pro.
If you have questions about ANY of those, give our Customer Care Team today from 9 a.m.-5 p.m. at 1-888-872-3301.
To Your Trading Success,