Mr. Wanninger takes a conservative approach to options and spread trading.
His trading bias is based upon the idea that markets move in a general direction based upon fundamental principles, underlying principles of supply and demand and at the same time understanding that the markets are unpredictable at any given moment. Use of technical analysis is used to help more precisely time entry and exit strategies. Rarely does Mr. Wanninger initiate outright futures positions in this trading program.
Mr. Wanninger’s general trading methodology relies
heavily on selling option premiums against his general
attitude towards price movement and direction over
an extended period of time. This type of trading
philosophy, by nature, tends to result in less volatility within the trading platform. Spread trades versus outright futures positions are utilized to capture futures directional trade bias thus reducing exposure to excessive drawdowns.