The Best Trading Strategies Revealed
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Strategy is a Function of the Market You're In
Tom Sosnoff of thinkorswim says the question of which strategy is right for both neophyte and experienced options traders alike really depends on a number of factors, including the kind of market you are trading in, and your personal goals.
"Strategy is a function of where the market is ... For example, during market declines, volatility expands. When volatility expands and prices go lower, something like covered calls are a great strategy. When volatility contracts and prices are higher, I don't like that strategy. So it's just a function of where we are in the marketplace.
"We [thinkorswim] teach customers all different types of things. For example, if you think we're at the high end of the [trading] range, we teach customers about selling upside credit spreads. If we think we're in a range-bound market, we'll talk about butterflies and iron condors."
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