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This page shows trading setups for stock and options traders. Look them over and make
whatever changes you feel are necessary to get the setup to work for your trading style.
Be sure to return to the home page for
more trading information.
Options Traders: Consider Puts not Calls
When trading options the focus should be
on puts, not calls. Why? Because price drops faster than it rises. For example,
on page 756 of my book, Encyclopedia
of Chart Patterns, Second Edition, Table 49.2 for symmetrical triangles
says that it took price 124 days to climb an average of 31% after the breakout, but it took
price 45 days to drop 17%, both in a bull
market. The drop is over twice as fast as the rise. And this is not an isolated
example.
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