Markets can be unpredictable. A bad economic report, geopolitical event, or central bank decision can swing assets from one direction to another very quickly. One way you can navigate some of that risk is with options.

As All Star Charts chief options strategist Sean McLaughlin explains "with options you can structure trades in such ways that you know what your risks are going in overnight or into any event or any event specific thing, like an election, for example. You know what your risks are as long as you're comfortable with those risks, you can sleep at night. And we could still position to profit when we get the trades right."

He says the for the next few months, he's using "defined risk options trades," saying "we could be keeping it very simple. Let's say just like a long call if I'm bullish, perhaps a bull call spread where I buy a slightly out-of-the-money call and sell one further out of the money to lower my costs in both cases, the premium that I pay is the most I can lose."

Watch the video above to hear how McLaughlin is using options to play Exxon Mobil (XOM)

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Stephanie Mikulich.