Trading In An Up Market

Today we’re talking about two trading strategies to use when we are in an up trending Market. When you trade options, you have many choices of how to set up your trades to make the most impact on your financial goals. As always, the direction of the Market trend will narrow down those choices so a clear winner comes out on top.

Your first goal is always to first recognize the trend of both the Market and the ticker you want to trade.

And the second goal is to structure the trade for the greatest return in the shortest amount of time.

Because the Market will generally go up rather than down, I will focus these kinds of trades. In an up market, the best trades are either Buying a Call or Selling a Put. Watch below to understand the difference and see what you resonate with the most.

Today I have introduced you to some new concepts and elaborated on some previously discussed concepts:
(Theta, Delta, At the Money, In the Money, Out of the Money, Setting up a bought Call option trade, Setting up a sold Put option trade, Credit Vertical, Risk Management, Margin Requirements).

But I really want you to focus on understanding Theta & Delta.

Theta, according to www.investopedia.com, "refers to the rate of decline in the value of an option over time. If all other variables are constant, an option will lose value as time draws closer to its maturity. Theta, usually expressed as a negative number, indicates how much the option's value will decline every day up to maturity."

And Delta, according to www.investopedia.com, " Delta (Δ) is a risk metric that estimates the change in price of a derivative, such as an options contract, given a $1 change in its underlying security."

Thanks so much for watching! And I hope you learned all about how to trade in an up market.

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