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Stock Option Type Stock Option Class Option Trading Setup

Option Set Up

BDCE - Trend: Option Set Up Example BDRE - Greenline: Option Set Up Example EDRE - Redline: Option Set Up Example

One Trader's Approach to Stock Options Trading Setups

The stock option class identifies long-term trends. The options trading set-up refers to the tail-end price movement. Stock options are a wasting asset and it's critical to find short-term momentum. The stock option scanner looks for breakouts/breakdowns, gaps, days in a trend, and greenlines/redlines.

A stock that is in a long-term trend and is staging a 10 day breakout/breakdown is significant to an option trader. On a long-term basis you have the wind at your back and on a short-term basis you have momentum.

For illustrative purposes, OneOption has selected a few of the stock options trading Set-ups and provided you with one Trader's perspective on how to approach the trade. The candidates that are returned by the searches require you to perform additional research.