This is a quite popular strategy in options trading. It is mainly concerned with the study of the past, using different parameters such as charts in order to predict the future price of an asset. This method is not concerned with getting the intrinsic value of an asset. Itís quite useful in options trading because as a trader, you donít have to delve into the companyís financial statements. Among the tools used in technical analysis include Bollinger bands and Moving Average among others.