A nice and simple way to trade is to use a defined visual channel. It does not matter much what the symbol is or whether the subject is stock or commodity or bond. This particular chart has a slightly declining range (somewhat lower highs and lower lows). Shorting the tops and buying the drops has seemed to work quite well for the past year and a half or so. This is actually Warren Buffet's baby (BRK.B - Berkshire). My last trade on this was a vertical put spread from just above the 210 area with the expectation of 195 to 200 by expiration in Oct. The idea is to make about 4 times the original trade if successful and then take the other side from 195/200 area back to the 210 region a month or two later. I should point out though that when long channels break one way or another they generally explode out in whichever direction: so stops are good ideas. Also, of course, timing is everything - so trading options a couple months out from expiration could help with that variable.
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