Timing

Catalyst and timing quality

A catalyst is not magic. It is a reason the trade has to be considered now instead of at some vague point later.

Good timing examples

• A scheduled earnings date, policy decision, product event, or known expiration window.
• A written technical trigger that can be invalidated.
• A volatility or pricing condition that makes the structure unusually clear.

Bad timing examples

"It ran," "it feels due," "everyone is talking about it," or "I don't want to miss it" are emotional triggers, not trade timing.

Primary reading: Investor.gov risk tolerance overview · FINRA options overview and risk · SEC Investor Bulletin on options · OIC options pricing overview · OCC Options Disclosure Document