Trading with the Data

Define Your Risk Tolerance and Goals: Before diving into options trading, assess your risk tolerance and establish clear trading objectives. Understand how much risk you’re willing to take on and what you aim to achieve.

Diversify Your Options Strategies: Spread your risk by using various options strategies. Consider covered calls, protective puts, and other approaches to safeguard your investments.

Set Entry and Exit Points: Determine specific levels at which you’ll enter and exit trades.

Having clear guidelines helps you avoid emotional decisions during market fluctuations.

Limit Maximum Risk Per Trade: When buying options, consider using debit spreads. These allow you to define your maximum risk upfront while still benefiting from potential gains.