Moving up, down and sideways on charts, put and call options exhibit the same predictable price behavior as stocks, commodities and futures contracts. The ABC ‘tracks’ they leave on charts allow us to buy and sell options at opportune times, to manage the risk of ongoing trades, and even to surmount the quirkiness of wide bid/asked spreads that are so common in the options game. During this session, we observed option price behavior with an eye toward leveraging swings in the underlying vehicles. We also revisited some cutting-edge techniques, including adapting ‘camouflage’ to facilitate ‘mechanical’ bids and offers.
