I am new to options and only familiar with the basic strategies, so I am probably getting ahead of myself with this question. But how important is TA to option trading? My understanding is that to profitably trade options, you need to be able to predict their behavior which in turn is derived from the the behavior of the underlying. Therefore one must be able to correctly analyze and draw conclusions about the future movements in the underlying. One way to do this is to use the tools of technical analysis (S/R, breakouts, pullbacks, trends, consolidations, etc.). Is this correct, or it is possible to trade options profitably without even a basic understanding of the standard TA? If you do not use TA on the underlying, on what do you base your trading decisions? I am not talking about finding rare arbitrage opportunities (which are probably out of reach for the retail trader anyway) and will assume that options are fairly priced. And a corollary to this question - if one trades the underlying directionally and also options on it, will both strategies show correlation? Because most often if you are wrong on your analysis of the underlying, you should be wrong both on your directional and on your (neutral) option strategies.