Professionals don’t ask “Which options strategy should I use?”
They ask “What risk am I deliberately taking, and why am I being paid for it?”
Purpose defines structure.
Structure defines Greeks.
Everything else is noise.
Expert options traders don’t start with strategies—they start with intent. Options are instruments, not ideas. Misuse happens when traders select structures (iron condors, straddles, calendars) before defining what risk they are being paid to take.
1. Define the Purpose First
Every options position should clearly answer one primary question:
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Am I hedging an existing exposure?
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Am I monetizing volatility (overpriced vs underpriced)?
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Am I shaping payoff asymmetry?
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Am I expressing time or path dependency?
If the purpose isn’t singular, the trade is likely inefficient.
Real-world example:
Buying puts on SPY during elevated VIX isn’t “protection”—it’s volatility speculation. True hedges are structured when vol is cheap, not when fear is priced in.
2. Strategy Is Just a Wrapper
Strategies are containers for risk, not edge.
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A covered call can be income, a partial hedge, or a volatility sale.
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A straddle can be a volatility bet or a liquidity event play.
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A vertical spread can be defined-risk leverage or capital efficiency.
Same structure. Different intent. Different evaluation criteria.
Example:
Selling puts to “generate income” without acknowledging embedded downside risk is simply leveraged equity exposure with delayed realization.
3. Greeks Follow Purpose (Not the Other Way Around)
Experts don’t chase Greeks—they accept them as consequences.
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Delta: directional exposure you intend to carry
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Gamma: convexity you are paying for or selling
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Theta: time decay you harvest or endure
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Vega: volatility exposure you want on or off
Example:
Running short gamma into CPI is not bravery—it’s misaligned purpose.
4. Time Is a Position
Options express when, not just what.
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Short-dated options = precision and fragility
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Long-dated options = patience and cost
Example:
Buying 0DTE calls for a multi-week thesis is a timing error, not a directional one.