Profitable Options Trading Strategy

  • Thread starter memetrades
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memetrades

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Hi All.

I've been researching & playing around with trading options for about a year now. I've done a few trades here and there, but nothing large scale or concrete. I've been having problems with doing the Due Diligence, chart analysis, etc. to figure out if a play is the right one consistently and be confident about it.

Most of the trades i've done previously have been either following high Call volume trades or large changes in Open Interest. Besides searching big news about a company that comes on my radar, i find it hard to pinpoint the catalysts sometimes.

The only ways i've been trying to analyze volume are with Fidelity's Option quote chart to see which volume appears to be opening or closing contracts, and i'm not even sure if that's reading it right.

Looking for any good advice on doing the Due Diligence for these trades, possible profitable strategies, ideas on analysis of options trades, etc. Would anyone be willing to help?
 

Windlesham1

Well-known member
454 35
Hi All.

I've been researching & playing around with trading options for about a year now. I've done a few trades here and there, but nothing large scale or concrete. I've been having problems with doing the Due Diligence, chart analysis, etc. to figure out if a play is the right one consistently and be confident about it.

Most of the trades i've done previously have been either following high Call volume trades or large changes in Open Interest. Besides searching big news about a company that comes on my radar, i find it hard to pinpoint the catalysts sometimes.

The only ways i've been trying to analyze volume are with Fidelity's Option quote chart to see which volume appears to be opening or closing contracts, and i'm not even sure if that's reading it right.

Looking for any good advice on doing the Due Diligence for these trades, possible profitable strategies, ideas on analysis of options trades, etc. Would anyone be willing to help?
I have never found open interest useful- these are not options that exist in isolation generally, so you don't know what the intent is. Same with any level 2 -I trade only monthly FTSE index options as I don't like to waste money.
 
 
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