Sometimes we do puts
and calls- with both S&P an ND futures and SPY and
QQQQs- I look for the big moves on the forecast and use
only a small portion of my account on the trade. Futures
may be better in a taxable account if you can afford it and the
contract you are trading is liquid- I will trade by what
the market gives me, so I don't have a set number of trades per
month- My first advice is to not be too aggressive with
the options- If you don't have a solid handle on the
leverage you are using, I wouldn't do it- That is, how much the
option moves in price for a corresponding move in the
underlying.
The closer you get to the money, the more it will move in
general- I tend to trade right around the money for this reason-
By doing this, I will get price acceleration if it goes my way
and less of a loss if I am wrong. Find a high or low in
the forecast that seems to be confirmed by the intraday to make
your move- You will have to develop your own style that fits
your own personality and account size. Use caution- have fun- Good
luck-
