Yesterday we talked about how market neutral options traders usually generate their best returns when directional equities traders are struggling to find opportunities.
Here’s one practical way you can begin to add market neutral options to your playbook.
Action: Use midday as options time
The best opportunities for short term equities trading is at the open and close of each session.
The middle of the day is typically quieter and is when options traders actually like to negotiate their adjustments.
Establishing a routine of thinking about market neutral options opportunities during the middle of the day is a great first step to adding options to your playbook.
Today — start a notebook dedicated to learning market neutral options. Watch some youtube videos, read tweets that include #options, $SPX, and $RUT.