I am using the Darvas System to pick stocks; that means I want to play the intermediate-to-long term directional movement of the stocks. In this case, what options should I look for? Any feedback would be much appreciated.
You could use deep ITM Leaps as a stock replacement. That is, you buy Leap calls with Delta of 0.8 or more and a year or more to exipry as a substitute for long stock.
======== If you are looking long calls; would avoid the weak semisector for most all time frames. And whether you are thinking inside the BOX or outside the BOX; prefer underlyings and ITM, or ATM or ITM that i have sheets/paperwork on. Hope this helps.
Isn't 'Calendar Spreads' more for volatility bets, then how to use Calendar Spread as a vehicle to bet on direction?? Thanks in advance!!
Without going into all the details, the way to play calendars as a directional bet is to set up OTM calendars. E.g. the stock is at 50 and you think it will go to 55 by some specific time, so can enter a 55 call calendar, thus creating a directional calendar.