Hi Michael, I met you at Tim Sykes Conference this year. I am interested to know more about your trend following strategies. Are they applicable in today’s choppy market environment and can we apply it to options trading with time decay working against us with the simple calls n puts? –Monique C.
Time decay is an issue for regular options. But as a trend trader you won’t be trading regular options–just LEAPs options–and time decay is not the issue there.
Choppy markets? One can never predict when a market will be choppy or not. You need a strategy for all markets conditions and trend following fits the bill. It won’t make money during the chop, but it will aim to lose less. Sometimes minimizing losses is much more important v. trying to make money. You can only take what the market gives.