Identify situations that are not sustainable:
This is part of the reason why the next correction could be so incredibly sharp. You have an immense amount of leverage via options.
Again, you don't necessarily have to know positive knowledge (x is going to do y), you can identify trades via negative knowledge ("a" cannot do "b" or "a" cannot currently maintain its relationship to "b"). Utilizing negative and positive knowledge/deduction is what allows you to view a complex system from multiple angles, thereby identifying what the actual dynamics and causal factors are. Plus, sometimes you don't need to time disequilibrium, you know the move will be large and so you are simply taking a convex bet on it until it happens (via a derivative instrument). Granted, people don't usually like to see a negative carry with an explosive payout. We generally feel safer if we have a positive carry even if that is followed by the loss of an entire position.
Trade safe guys and have a good weekend.