Markets are definitely getting more and more weird. Continued climbs to new highs and then pull backs in spite of seemingly positive information. Looking for the right approach for these conditions can be frustrating.
The search for good ideas often leads to taking a look at what the pros do in this type of situation. If you think about it, the big options traders and market makers have to find good trades everyday. Each morning they have to look at what is going on and find the right way to take advantage of what the market is doing.
We are fortunate to have a great group of top traders who have a lot of that experience and as I searched through how they make money, even when things are weird, I found a great tip.
Even though the market may be acting irrationally, there are still mathematical ways to find the best possible trade. Don Fishback is one of the top experts at building processes that determine the probability of a trade’s success. His approach makes it possible to put the odds of a big win on your side.
In his guide, Your Quick-Start Guide To Options Success, he outlines how using a straddle can be a favorable choice. A straddle is the purchase or sale of a put and a call of the same month, same underlying market, and same strike price. A big advantage is that it takes the guess work out of the trade and puts you in a position to make money if the stock goes up or down.
If you are looking for the steps to use a straddle, grab his book. No only does he walk you through straddles, but he also takes you through other top options strategies and the conditions that give them the best chance of success.
Keep learning and trade wisely,
Market Wealth Daily
PS-If you are looking for other information on options strategies, check out our page on TradeWins Daily for more ideas and information.