Explore Your Options by Jay Kaeppel
THE MODIDOR STRATEGY
Are there any strategies beyond the ones that most option literature details (long naked, credit spreads, debit spreads, calendars, straddle, etc.) that can be useful to traders who are not necessarily experts or who do not have a lot of experience?
Yes. But before getting into that, here are a few salient points. With this column, I typically try to stick to the “standard” strategies for several reasons. First, I believe that a lot of individuals new to option trading read this column, so I generally prefer to stick to the basics. While I may at some point get around to discussing things like “delta neutral” or “gamma scalping,” the reality is that while these things can absolutely be proﬁtable, they do not represent the type of strategy that the “average” trader tends to pursue (or is prepared to pursue successfully) ...