When the stock market's direction is unclear, navigating it can be tricky. Instead of relying on typical trend-following methods, consider options. Here's why: Option buyers can gain big even when they're wrong multiple times.
While most options expire worthless, they offer unlimited profit potential for limited risk. In uncertain times, this strategy shines. For example, if a stock drops from 1000 to 970 in two days, an option could go from 20 to 9.
But if it rises to 1060, the option could soar to 52. Choose options with expiries closest to the current date and strikes slightly above or below the current market price for best results.