Three vehicles
A vehicle should fit a confirmed setup. It should never create the thesis.
A stock or ETF position planned around a chart idea that may play out over days or weeks.
Allowed when: Direction is constructive, price is in a useful location, timing improves, and risk is defined before entry.
Stand down when: The chart is extended, direction is mixed, or the invalidation level is unclear.
Read swing-trading lesson →Longer-dated option contracts used only after the underlying chart has earned the thesis.
Allowed when: The quality name, structure, duration, liquidity, and thesis risk all make sense together.
Stand down when: The option is being used to rescue a weak chart, force exposure, or avoid defining risk.
Read LEAPS lesson →An options position that accepts an obligation to buy shares at the strike if assigned.
Allowed when: The strike is on a quality name you would own, collateral is available, and the chart supports the decision.
Stand down when: You would not want the shares, assignment would create a problem, or premium is the only reason for the trade.
Read CSP lesson →The rule
Risk is defined before entry. Price still has to confirm.