Option strategies augment any high-level investor's or speculator's overall approach. If you do option strategies of any kind, the following practices will help you get ahead:
Discipline: Successful options speculators make sure they aren't susceptible to emotions such as fear or greed, and they try to avoid a bias.
Money allocation: They speculate only with money allocated for options —and they don't spend a penny more.
Patience for opportunities: They don't trade every day. They wait for the right trades.
Planning: They have plans for entering and exiting a trade.
Ongoing education: They don't assume they've learned all they need to know about options and the underlying assets.
Hedging: They aren't totally directional. They know that the market can sometimes go against them.
Back testing: They use data from past or historical trades to see how trades would have or could have resulted.
