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I didn't do any optimization, and my backtest has produced thousands of trades.(100+ for many of the stocks in 4 years.) I am putting my money on the line, starting earlier today. Not much money of course, just enough to see if it works. I'll keep you guys posted, even if I fail miserablly.

I've come up with a strategy in metastock that seems too good to be true. It produces 89% winning trades, with a trade only being considered winning if it gains 3%. The average hold time is 2 days. I backtested over 4 years on the 100 highest volume stocks over $25 a share. I used a one day...

Ahhh, delta. Thanks!

My last stupid question, I promise. Say for example in intraday trading a $30 stock rises to $30.75. What would typically happen to the value of a near-expiration $27.5 call, and how long would it take? I am only concerned with heavily traded stocks. Thanks!

Hey thanks for all the responses. It seemed like every thread I read in this forum ended with 5 people warning that options are evil and will take all your money. I plan on trying my hand at swing trading call and put options. I'll post my results here but I'm sure they won't be pretty. :)

Wow I thought I understood options but this is just confusing me. Out of curiousity, what kind of returns has this gotten you since Feb? I mean just the trades you have posted here.

I don't get it. I can understand the spread eating you up if you try and day trade them, but what is wrong with swing trading? Sure you pay a higher spread, but if there is just a 1-3% move you can profit big time. Please explain it to me because I am about to start trading them.