“If a stock is in an uptrend, buying call options when the stock is near its mean is often a good idea. If a stock is in an uptrend, buying call options when the stock is a long way above its mean is often a less good idea! If a stock is in a downtrend, buying put options when the stock is near its mean is often a good idea. If the stock is in a downtrend, buying put options when the stock is a long way below its mean is often a less good idea!”