Original Question: Do you trade option ? Can we apply your theory to option trade ; if so whats the expiry we should take once the stock in QTS ?
I don’t trade option! The reason is very simple. Why the heck should I make trading harder by having to get two things (Direction and timing) correct instead of just one? INCREASE IN LEVERAGE DOES NOT MAKE UP FOR THIS HANDICAP!
Not being able to make a fortune in stocks and then trading options is like trying to swim in the wild ocean hoping that you manage to learn swimming there when it didn’t quite worked out in the indoor pool before. Or trying to ride a unicylce because you didn’t manage to ride a normal bicyle. Or… you get the point!
Option trading for retail is a massive con in my opinion. Options don’t provide a better risk risk reward ratio compared to stocks. If you are lured into them just because of the leverage consider yourself to be a gambler.
But maybe I am ignorant and simply suck at options. If you manage to make it work for you than more power to you.