The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “What is a technical trader?” To me, a technical trader is somebody who trades mostly based on chart patterns, based on technical indicators, based on price action, implied volatility metrics or some other form of data entry. And so, in my case, I think that I probably lean towards more of a technical trader because I care much less about the fundamentals of a company or what the earnings report of a company is going to be or what the growth rate of an industry is than I do about what the chart is actually showing, how far the stock or underlying ETF has moved recently, is it reaching any new technical levels of being overbought or oversold based on back-testing research that we have and what indicators we use. And so, I’ll use this in conjunction with implied volatility levels to make decisions on which trades we ultimately end up getting into. And this is what we’re going to b