Timing in Options Trading

It is important to enter an options contract with good anticipation of the possible movement of the options. Although there is no sure way of market timing, an options trader who has anticipated the market movements can develop better options trading strategies and contingency plans. The following scenarios are some of the situations that a successful options trader prepares for:

Is the underlying stock expected to move in a particular direction in a given period?
Is the underlying stock expected to move drastically, but the direction of movement is not known?
Is the underlying stock expected to follow a general trend, but the time interval of the movement is unknown?
Is the underlying stock expected to more or less remain in a given range?


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Please Read This Important Risk Disclosure

Trading in stock, options, Futures, and FOREX markets carries a high level of risk, and may not be suitable for all investors. Before deciding to trade these markets, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading, and seek advice from your own independent financial advisor. The member acknowledges that unique experiences and past performances of the Stock Advisor Group do not guarantee future results. The member understands and acknowledges that trading Stocks, Options, ETFs, Futures contracts and Stock Options are suitable only for knowledgeable investors who understand the risks inherent in trading currencies, have the financial capacity and willingness to incur losses. The member is fully aware that StockAdvisorGroup.com may use an electronic trading system to generate trades, which exposes the member to risks associated with the use of computers, and data feed systems relied on by Stock Advisor Group. The member agrees to accept such risks, which may include, but not limited to, failure of hardware, software or communication lines or systems and/or inaccurate external data feeds provided by third-party vendors. The member understands that no "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.

Hypothetical Results Disclosure
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