Day trading Options (best option?)

[tradingpoker]

Are you saying you may buy 1 40 Delta call or 1 75 Delta call instead of buying 100 shares of stock??

The only way that works is if you are a bad directional trader

You are guaranteed to underperform if you are good

Why do you say this? If you don't mind me asking

Thank you

 

[easymon1]

Are you saying you may buy 1 40 Delta call or 1 75 Delta call instead of buying 100 shares of stock??
The only way that works is if you are a bad directional trader
You are guaranteed to underperform if you are good

Based on what shoddy options price data I have at hand lol, the principle may illustrate what you are telling me nonetheless.

If the trade size is determined by the sqqq setup's stop spread, (spreadsheet)
and the dollar risk is translated over to determine how many contracts of sqqq options can be bought for the same stop spread dollar value,

then in this case 700 shares of sqqq (risk ~161.00) equate to only 2 contracts of sqqq ~40delta options @ 0.75. (161 /0.75 =2.1 =2 contracts?)
If that's correct the yield on 700 shares = $550 vs on 2 contracts = 0.20 x200 = $40. $550 vs $40? Krikey. How far off is this?

Could the choice of a more amenable product, or Day of the week, ???, tip the scales to something in the ballpark like Yield $550 vs $450?
Given the options price data is highly suspect, is this principle nevertheless the major wall that puts this half-baked idea in the reject pile or is this data so out of whack that the conclusion is marginal and if done as outlined above might be feasible under different conditions?
https://www.elitetrader.com/et/threads/day-trading-options-best-option.366175/page-3#post-5576519

 

[taowave]

So you are trading 700 shares of stock with a tight stop(apx .23),but trading 2 Delta 40 options as a cash substitute?? If you are dead right,you are long 80 delta's to start maxing out at 200 delta's assuming Delta goes to 1???

 

[easymon1]

So you are trading 700 shares of stock with a tight stop(apx .23),but trading 2 Delta 40 options as a cash substitute?? If you are dead right,you are long 80 delta's to start maxing out at 200 delta's assuming Delta goes to 1???

What?
Does the simple math above lead you to whatever you're on about?

The questions I pose in post #32 are yes or no, lol.
How 'bout we start there?

1) Could the choice of a more amenable product, or Day of the week, ???, tip the scales to something in the ballpark like Yield $550 vs $450?
2) Given the options price data is highly suspect, is this principle nevertheless the major wall that puts this half-baked idea in the reject pile
3)or is this data so out of whack that the conclusion is marginal and if done as outlined above might be feasible under different conditions?

 

[taowave]

You need to Ask yourself why you should trade options over the underlying..

You are trading on a very short time frame,so overnight risk is ruled out..

What's your edge/objective???

Your example if buying 2 40 Delta calls as opposed to 700 shares makes no sense ..

What?
Does the simple math above lead you to whatever you're on about?

The questions I pose in post #32 are yes or no, lol.
How 'bout we start there?

1) Could the choice of a more amenable product, or Day of the week, ???, tip the scales to something in the ballpark like Yield $550 vs $450?
2) Given the options price data is highly suspect, is this principle nevertheless the major wall that puts this half-baked idea in the reject pile
3)or is this data so out of whack that the conclusion is marginal and if done as outlined above might be feasible under different conditions?

 

[easymon1]

You need to Ask yourself why you should trade options over the underlying..You are trading on a very short time frame,so overnight risk is ruled out..What's your edge/objective???Your example if buying 2 40 Delta calls as opposed to 700 shares makes no sense ..

Yep, we agree. That's what the extremely loose numbers show so far.

Now then - from someone who's doing it, and there do appear to be, if a more straightforward exploration of why trading weekly options based on setups / triggers taken from a 5min chart, as in the example posted above with chart showing stop spread, target, etc all layed out ...
https://www.elitetrader.com/et/threads/day-trading-options-best-option.366175/page-4#post-5576553

If you're doing something like this or know of someone who is, any info about the details of making it work are of more interest than all the dustups of the it'll never work side of the rail. That's the defacto position of any rational trader, (it is assumed to not work until stats can show that it does) so no need to beat a dead horse.

So if someone is making a buck trading intraday options, especially if entries are triggered by setups on the underlying's chart using a solid trading plan, then that could lead to an interesting discussion. "Substituting weekly options for underlyings in day trading, Paradise or Pipe-dream?" lol.

Here's a link to a chart of some profitable intraday option trading by an ET'er...
Anatomy of a fun 2-day trade (AMC +$60k) (Be aware that he uses the term "Sell" to denote "Exit" on his marked up chart.)
https://www.elitetrader.com/et/threads/anatomy-of-a-fun-2-day-trade-amc-60k.359907/

Additionally - any nuggets like this that can be explored?
Bring 'em on...
"Fwiw statistically Friday's are my best day of the week by 2x so everything is a yolo. I'm not interested in the safer ways to trade this setup on Th/Fri."