May 6, 2007
Trading FAQ - Best Charts To Trade Stock Options
Question: I always wanted to ask you what is the preferred time frame to trade options. I look for stocks to be in line with the market, with beta >1.5 and Volume >1 mil daily. According to your experience what is the best time frame for holding periods of up to 1 week? (not day trading) - Zarifis
Answer: I personally like using either the the daily, weekly charts to find my trade setups. Another great time frame to use is 2 day and 3 day charts. Unfortunately with my Trade Station software I don't have the ability to trade those time frames.
The reason all those time frames are good for finding option trades is that they cut down a lot of the random market noise.
Hope that helps. If you need more clarification let me know.
Filed under Blog, Frequently Asked Trading Questions by Jeffrey Wilde