How to be wrong and still profit by David L. Caplan
Why bother learning and using professional option strategies? Why spend the time and energy to
learn how and when to use options and option strategies when, in trading futures, all you have to do is
use your technical, fundamental or system analysis, pick the direction of the market, follow the trend, buy
low, sell high and reap the profits?
In comparison to those two or three decisions that have to be made in trading futures, option strategists
have almost 40 billion decisions to make! Should options be bought or sold? Should puts or calls be
used? Which strike prices should be used? Which trading months offer the best premium value? Which
combinations of strategies should be used? And should options be used at all? In totality, it has been
computed that there are more than 40 billion potential combinations of strategies that can be used on any
ONE commodity to making a trading decision. In fact, it is so complex that, similar to chess, a computer
program has not yet been invented that can outperform an expert.