Ok but the experts are saying that we did all this at the expense of potential profit. Yes, indeed right again. Rule two actually works better in options than futures. The main reason is that volatility can increase and decrease. With futures, sure they may go limit up or down but options move value as expected and then some extra because of what the experts call volatility changes.
Water freezes with higher volume as a solid.
Let us say that our criteria for being correct are that the market moves at least 15 points. So at 1005 we accept being correct at this price. We will make our position larger at this point. We have many option possibilities but the best option is to buy a higher strike than where our current position is due to the increase in volatility. A delta of 50.60,75 can only go to 100.