There is a chapter in the"market Wizards" book by Jack Schwager where he interviews John Bender- a money manager with Soros, Quantum,etc. Here is an excerpt of his interview. Jack Schwager: How were you able to make consistent gains trading options? John Bender:To make money in options,you don't need to know what the price of a stock is going to be; all you need to know is the probability distribution. If the Almighty came to me and said,"I won't tell you where IBM is going to be 1 month from now, but you've been a pretty good boy, so I will give you the probability distribution", I could do the math.... Interview with John Bender of Amber Fund /Soros Fund Management & Quantum Fund from the book "Market Wizards" by Jack Schwager.
so, if you can "predict" probability distribution of a stock thru technical analysis, you can then pair off that with an appropriate option spread.