I'm just wondering what sort of option spreads are appropriate if you believe a stock will continue its dead cat bounce even though most of the time, it's in a prolonged but weak uptrend. When the uptrend ends, it suddenly crashes to a new low and erases the previous weak uptrend's gains before beginning a new long and feeble uptrend again.
I'm thinking something along the lines of a strangle with a ATM call and a OTM put but if you have a better idea, please share.. I'm still learning about these option strategies.
I'm thinking something along the lines of a strangle with a ATM call and a OTM put but if you have a better idea, please share.. I'm still learning about these option strategies.
