Day Trading Options

R

rhreed19

Does anyone or do you know of anyone that daytrades options.
I've been daytrading GOOG BIDU and PCLN options...use various indicators to enter and exit 2 or 3 tines a day on each one. is this a viable way to trade. Seems too simplistic.:confused:
 
Enjoy it while it lasts. I wouldn't daytrade these options because of the spread. If you've a good run with your trades, just buy the stock with leverage and you'll probably pocket more money.
 
How do you go about buying stocks with leverage? I have found that the otions are generally filled about mid-point in the spread.
Not really all that bad. If you're right on directions things work out well. If not you get hur either way....otions or stock
 
leverage = margin

If you've 30k in your account you can buy 120k (not that you should) worth of stock and you'll just have to deal with a one or two cent bid/ask spread. If you're wrong and need to get out you're in a much better position that way. Now that assumes you really day trade, otherwise your margin requirements go up. I wouldn't rely on the mid-price fill too much, they typically work if the stock moves into your direction, if it doesn't you may have to pay up to the natural (or close to it).
 
Quote from KINGOFSHORTS:

If you said GE options I would probably believe you.
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Problem with GE is the low $-wise price plus relatively low IV, such that commish (even if low) is a meaningful portion of the option value.
 
Quote from KINGOFSHORTS:

Bullshit, you can drive a truck through those spreads.

If you said GE options I would probably believe you.
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the spreads on names like aaple, spy, rimm etc aren't that bad. its not like he said scalping options.


its not difficult to day trade options, the difficult part is being in the right direction.

I occasionally day trade options but for the most part hold them overnight of for a couple of days. I don't trade them for a few pennies or a nickel though so I don't mind the spread difference opposed to something ultra tight that won't make any money. Thats why a lot of traders don't make money in the first place, most of you think its all about scalping something for a penny. then you wind up churning yourself out and losing money
 
Quote from SCI new york:

Thats why a lot of traders don't make money in the first place, most of you think its all about scalping something for a penny. then you wind up churning yourself out and losing money
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THANKS FOR THE TIP!!! THANKS FOR TELLING ME WHAT I THINK ITS ALL ABOUT!!!
 
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