Options
Traded ValueIt's best to pair some underlying stocks with options, the "Seven Sisters" will do.
This way you won't impulsively want to open positions all the time. Actually, holding underlying stocks can be quite fun - you'll truly treat options as tools. For example, during these days of sharp declines, I used QQQ puts as protection. I'm actually happy when it drops because the options make money, and when the underlying drops I can average down without missing dividends. If it doesn't drop as expected, the underlying can still make money. This combination keeps your account active even when closing options positions (professional option traders often make wrong trades out of emptiness after closing). Most option traders gamble too much - this approach can somewhat avoid that. It also helps control your position size, preventing you from going all-in on options when excited.$Invesco QQQ Trust(QQQ.US)
This position is closed. The first day line hit the 5-day line, which is a clear resistance level. The second in-the-money option didn't have much volatility, so we can continue to choose out-of-the-money ones. Third, take profits when it's good—the bullish momentum has already been largely exhausted. Take a break. I hope to see a hanging man candlestick today, which would allow the bulls to catch their breath while the bears continue to release pressure.
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