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Options and momentum, how to understand?
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<p>Momentum traders, in general, seek to identify how strong the trend is in a given direction, then open a position to take advantage of the expected price change and close the position when the trend starts to lose its strength. You won’t necessarily attempt to find the top and bottom of a trend, but instead focus on the main body of the price move. You would aim to exploit market sentiment and herding – the tendency for traders to follow the majority.</p>
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