I do what you're suggesting @qlai - trade direction with long options. Duration tends to be 20-40 days between swings. Details on my journal here and I'm happy to try to answer questions if I can. https://www.elitetrader.com/et/threads/global-options-trades.330518/
Thanks, @Global OptionsTrades. I am not understanding ... Your trading is TA based and is automated enough to be back tested?
I just skimmed through the video that you originally posted, and note that the presenter is advocating only selling options, which is fundamentally different from my approach of primarily buying options for direction. However, I also sell Out-of-the-Money spreads, which accords more closely to your video, but without the unlimited downside from a naked short option that the presenter declines to mention!
Yes, but TA is not rule based - very subjective. That's not correct. He was buying calls with the premiums he collected on selling puts. The strike of the short puts coincided with technical support levels at which he would not mind to get assigned. So after a big sell off, he was looking for at least a quick pop in price. However, if the stock plummeted even further, he would be long the stock at very oversold levels. Which is what swing trading in a bull market is anyway, imho.
Apologies, YouTube jumped to another video, which was the one I commented upon by mistake. The scenario you describe, per the (correct) video still leaves the trader short a naked option. I prefer to just buy options (combination of AtM and OotM) with downside limited to premium.