Below are the rules that I follow when it comes to swing trading options.
Please add to these rules anything that you have found useful overall, it can be about entries, exits, option selection, methods to keep you in the trade, etc.
Lets build a rule set to follow.
Option Swing Trading Rules
1. Confirm Trend
- Weekly Direction
- Daily Uptrend
- 1 Hour Confirmation
- 15 Min Entry
2. Confirm Sector Direction/Trend
3. Confirm Implied Volatility below 20
4. Purchase options 1 month out.
4. No Entries or Exits within 1st 30 minutes of Market Open.
