Wade's Amazing Option Trading Strategy

1) Buy relatively low cost options (i.e. stock is worth 20 to 100 times the price of the option).

2) Buy a basket of positions.

3) Try to stay diversified in your calls and puts within your basket.

4) Never sell a down position.

5) Be a contrarian as a buyer. Buy 'puts' when the market has been hot, and buy 'calls' when the market has been in the tank.

6) Be a contrarian as a seller. Sell 'calls' when the market has been hot, and sell 'puts' when the market has been in the tank. (opposite of previous rule)

7) Whenever your multiple (i.e. rate of return expressed as a whole number) doubles in a gap up or down, sell half your position and let the rest ride.

8) Try not to be overweight in any one particular position within your basket.