It’s no secret if you’ve been following me on any of the platforms I post on that I’m an Unusual Options Activity sort of guy.
I like to pick through large or unusual opening positions into certain names and try to assess catalysts or antagonists entering into those trades.
Sometimes, I mirror the unusual trade I saw, following that trade into the same expiry and strike.
In other cases, I try to buy “safer” options..be they more in the money or with more expiration time on them. It costs me more premium, but it also lowers my risk.
To reduce risk even lower, I might pick up the underlying equity of the stock that has been catching option buying patterns I like.