Options
Direction vs Strategy: Two Different Decisions
Date: 2026-08-07 12:00:03
Rule of thumb: your market assumption chooses the direction.
Your strategy chooses the risk, reward, and probability profile.
So if I’m bullish, that tells me direction — but it doesn’t automatically tell me the strategy.
That’s why we use the “trade with a plan” framework:
Create a plan
Test and optimize it
Automate the plan
Before I select a strategy, I need a plan:
what do I think the market will do?
how much time do I want to give it?
do I want to buy premium or sell premium?
do I want defined risk?
higher probability/smaller reward… or the opposite?
Then I can test and optimize: compare strategies, strikes, expirations, and risk/reward.
Once those rules are clear enough — then I can automate the plan.
#optionstrading #tradingplan #tradermindset #tradingdiscipline #systematictrading
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
