trading options can be whatever you want it to be, but in reality, it's all about trading volatility. Because options are priced on their implied volatilities. This makes options trading easy, if you are patient - because it is easy to predict when options iv's will rise/fall, in general.
Individual stock options iv's will rise before their earnings announcements, and fall right after that.
The iv's of the entire stock indices will rise ahead of binary events like big elections, and to a lesser extent, ahead of FOMC announcements - and then usually crash after the binary event is settled.
Rate hikes are a special consideration, because, at some point, it becomes more attractive to settle for the 'guaranteed" low return of bonds vs. gambling on a higher return from equities.
Not saying trading options directionally based on TA is "wrong" - whatever you are doing is "right" if it's repeatable and if you're making money doing it. Maybe just be careful reading those TA signals right in front of a big vol-inducing event, that's all...
Individual stock options iv's will rise before their earnings announcements, and fall right after that.
The iv's of the entire stock indices will rise ahead of binary events like big elections, and to a lesser extent, ahead of FOMC announcements - and then usually crash after the binary event is settled.
Rate hikes are a special consideration, because, at some point, it becomes more attractive to settle for the 'guaranteed" low return of bonds vs. gambling on a higher return from equities.
Not saying trading options directionally based on TA is "wrong" - whatever you are doing is "right" if it's repeatable and if you're making money doing it. Maybe just be careful reading those TA signals right in front of a big vol-inducing event, that's all...
"If The Fool persists in his Folly he will become wise." - William Blake