Trend Trading with Options

Anyone seeking to learn more about the trading strategy used at Monarch Wealth Management Group, LLC and its performance since inception should check the Program and Performance sections of this website. Those with an interest to invest funds in the Monarch strategy can contact Dr. Olmstead and the Monarch Team on the Contact Us page. 

Monarch Wealth Management Group, LLC Trading Strategy

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TREND TRADING WITH OPTIONS: Before initiating an option trade, check the current trend of your stock as well as the overall trend in the market. Because option trades are time-limited, make sure the trend is working with you.

In other words – the trend is your friend!

It’s usually not wise to take an option position that attempts to capture a bottom or a top in the stock price.  Wait for some confirmation of the move you want to capture.  You can afford to be patient about entering a trade, because with the leverage of options you do not need to catch much of a move in the stock to make a profit – that’s the advantage of trend trading with options.

If the stock you like has pulled back, look for a clear indication it’s resumed its uptrend before buying a call.  If the overall market has been in a bearish mode, be careful about initiating a bullish option trade until a reversal seems evident.