chapter 7Synthetic Swing Trading

Close proximity to the options and futures markets, trial and error, and experience have led us to a keen understanding of the trading game. We have acquired a basket of knowledge and skills that we believe to be imperative to financial success in this vicious arena. Although having this knowledge and understanding in no way, shape, or form guarantees profits; nothing does. However, the premise of this chapter is to alter your perception of option trading by sharing some of our ideas.

Because markets tend to trade in a defined range, we have concluded that outright long option positions are priced to lose in most cases. As a matter of fact, studies conducted by the Chicago Mercantile Exchange (CME) suggest ...

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