part 2 Succeeding with options by Leonard Yates
As promised in the first half of this article, here are three safe and reliable methods for succeeding in
options without forecasting the underlying security.
Method #1: Temporary mispricings
Options frequently trade for as much as a one-half point difference from theoretical values for short
periods. In such times of temporary mispricings, you should buy undervalued options and/or sell
overvalued options. Strategies can be found that minimize your exposure to price movements in the
underlying asset if desired, while waiting for option prices to return to normal.