Day/S-T Trading w/ Options

Originally posted by Jonnytrade344
It is extemely hard to get of option positions unless you either a. want to hit the other side of a big spread or b. have the stock moving your way fairly quickly. Otherwise, you are basically screwed.
More...

Really ...
 
I think the answer to the original question is pretty simple--no, you shouldn't try to trade options on a very short term basis. The spreads and potential lack of liquidity will destroy you. I am sure there are many sophisticated options traders using strategies such as gamma scalping who do trade big size on a daily basis. But for the small scale player using options basically as a leveraged way to make directional bets, no way.
 
Originally posted by AAAintheBeltway
I think the answer to the original question is pretty simple--no, you shouldn't try to trade options on a very short term basis. The spreads and potential lack of liquidity will destroy you. I am sure there are many sophisticated options traders using strategies such as gamma scalping who do trade big size on a daily basis. But for the small scale player using options basically as a leveraged way to make directional bets, no way.
More...

I have about 15 traders who would disagree ...
 
Originally posted by metooxx


I have about 15 traders who would disagree ...
More...

But are these guys doing directional trades, as AAA Beltway implied in his post, or are they spreading and/or doing volatility trading?
 
It was different during the bubble when the underlying stock moved 20-30 bucks intraday and the options moved huge (in terms of %). Nowadays, it is a different game.
I do trade the SPX options frequently - but definitely NOT every day.
Have Fun Trading!:p
 
I am not sure that McMillan says that options are a good vehicle for day trading. If you follow his trades, he prefers futures for day trading. Most of his options trades last 1 to 4 weeks. Some of his spread trades last longer.

George
 
Originally posted by metooxx
Now that is the secret of life;

a little bit of everything, but in general fast scalps ...
More...

I would really like to know how they are doing it, because there are not that many people who can make decent money scalping the underlying stocks. I'm sure it is a big secret, but in fairness to the guy who started this thread, do you claim some average trader could do it?
 
Originally posted by AAAintheBeltway


I would really like to know how they are doing it, because there are not that many people who can make decent money scalping the underlying stocks. I'm sure it is a big secret, but in fairness to the guy who started this thread, do you claim some average trader could do it?
More...

No.
 
You must log in or register to reply here.
Back
Top