InvestorQ : What exactly do we mean by directionless markets?
Moii Chavate made post

What exactly do we mean by directionless markets?

Answer
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Sam Eswaran answered.
2 years ago


Directionless markets can either be volatile or lacklustre. The point is that they do not have any clear direction emanating from them. We have heard of bullish markets and we have heard of bearish markets. What if markets are neither bullish nor bearish and it is really hard to predict the direction of the market. These are called directionless markets. The advantage of using options is that you can also use tailor made options strategies for these kinds of directionless markets. In fact, the beauty of options is that there are several dedicated strategies for you to either take positions in lacklustre markets or even in high volatile markets. It is ok if you are not able to figure out the direction of the market. If you can figure out volatility that is good enough!