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The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies by Guy Cohen

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Chapter 4. Volatility Strategies

Introduction

Volatility strategies are defined as those in which you can make a profit whether the stock moves up or down. The point is that you don't care which direction it moves, as long as it moves explosively in one direction or the other. The trick, of course, is spotting something that's about to make that move and then determining how to take advantage of it!

In my workshops, I always ask my delegates who's ever taken a stock tip before. Typically a number of sheepish faces look around the room at each other before the hands start to rise, and then I usher them all upwards! So, how about you? Have you ever taken a red-hot stock tip? I bet you have . . . or will some time in the future!

So, if you took ...

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