The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the DNA of an options trader. And so, to me, the DNA of an options trader is really two things. This kind of stands for two things. There’s the first type of trader which is the “do nothing” approach trader which literally just sit on the sideline and they don’t actually engage in the market or when they do engage in the market, it’s very sporadic. They might make a couple of trades here and there, but they’re really looking for that perfect opportunity, that perfect window to make a position or to enter a trade and we know that that’s not always going to come. By default, their “do nothing” approach or mostly “do nothing” approach leads them down a path where they make fewer and fewer trades and the problem with this is that as they make fewer and fewer trades, each and every one of those trades becomes more and more important. I’ve often used the analogy before, but it’s worked