OK. I’ll admit it. I’m bored with trying to build trading systems. So I got to wondering whether using options to make directional bets on prices might be fun. There’s probably a dozen books on options on my shelves. But I fell asleep trying to read one yesterday, McMillan on Options. For sure, it was a warm, sleepy afternoon out on my deck. But what he was saying just didn’t make immediate intuitive sense, and I drifted off.
I’ve traded options before in which I went long the bond and then short the common by buying puts. The gig was successful. There just weren’t that many opportunities to deploy it. So I abandoned it. But with the current turmoil in markets looking to boil over, there might be some opportunities to make some fundamentally-based, technically-vetted bets. So that’s today’s research project. If something similar interest you, hop on over to www.Investopedia.com and check out their beginner-friendly intro to using options, or take a look at this website. https://www.optionsplaybook.com/