12 lines
873 B
Plaintext
12 lines
873 B
Plaintext
726 Part VI: Measuring and Trading Volatility
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So, is there a better alternative? Or should one just pack it in, buy some index
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funds, and forget it? As an option strategist, one should most certainly believe that
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there's something better than buying the index fund. The alternative of volatility trad
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ing offers significant advantages in terms of the factors that make directional trading
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difficult.
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If one finds that he is able to handle the rigors of directional trading, then stick
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with that approach. You might want to add some volatility trading to your arsenal,
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though, just to be safe. However, if one finds that directional trading is just too time
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consuming, or you have trouble utilizing stops properly, or are constantly getting
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whipsawed, then it's time to concentrate more heavily on volatility trading, preferably
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in the form of straddle buying. |