Chapter 9Trading Plans and Putting It All Together
You’re now armed with two stock strategies and six major options strategies to take advantage of volatile markets.
• Bull flags (long stock)
• Bear flags (short stock)
• Call ratio backspreads
• Put ratio backspreads
• Diagonal calls
• Diagonal puts
You could add to this list the long call and long put provided you trade them deep ITM and contingent on a breakout of the stock price. You’d trade the long call contingent on the bull flag breakout and the long put contingent on the bear flag breakout.
Ideally you want to enter your trades while volatility is low and exit after a surge of volatile action in the markets.
In Chapter 8