" OPTION SPREADS "

[Newly2b]

Yup, still traveling. Leaving next week for points south, too cold here in So.Calif. this winter. . .

As to options, when one trades options, one looks for the same setups on the chart of the underlying that one would use to trade the stock so if the charts aren't working for you, trading options will only make a difference in that your at-risk money is less. One does not trade the chart of the option, but rather the chart of the underlying and enter/exit at the same points one would if trading the underlying (support/resistance). If one is bullish on the underlying one sells a Put or buys a Call, and vice versa if one is bearish on the underlying. Personally I prefer to sell an option rather than buy one because time decay always works in favor of the seller -- IOW as time passes, even if the price of the underlying is flat, the price of the option would drop because the portion of the cost that reflects the time premium declines, and this allows the seller of the option to cover his short position for a gain even with no movement in the stock's price.

Hope this helps.

Newly