Day Trading Options

Yes, see my reply on Earnings Play earlier today. You are looking for a strong move on a specific equity - big up, or big down - you don't really care. If there is an inconsequential move you lose Theta and so you would want to close off the position before too long.
To summarise you are selling reverse Call ratio spreads just before some major announcement or some major anticipated event.
Generally, you don't stand to gain much in this game, given the risk and given the market maker's spreads, and given the difficulty in predicting the underlying direction.
Best wishes
 
No, there are none since indices, stocks and futures never move enough to make money with options. Buy mutual funds and hold for 20 years.

:D :eek:
 
Quote from uniquetrades:
....DAYTRADING OPTIONS?
1) Focus on the most active and most volatile markets.
2) You will have another layer of "complexity" in your trading because of the attention you'll have to give to the option greeks. :eek:
 
Quote from uniquetrades:

ARE THERE ANY OPPORTUNITIES TO BE HAD IN DAY TRADING OPTIONS?

Yes. But since they are not marginable they have to be paid if full unlike the 25% on Equities.

(Don't worry about the Greeks)
 
Quote from Mikey111:

... You are looking for a strong move on a specific equity - big up, or big down - you don't really care. ...
If you expect a big move everybody expects one, so the i.v. is high (expensive options). Then, the big move comes, if it ever materialize, with a big drop in i.v. (cheap options).

There was an old thread showing same trades taken with naked options and stocks, on 30 minute charts.
 
Quote from uniquetrades:

ARE THERE ANY OPPORTUNITIES TO BE HAD IN DAY TRADING OPTIONS?

No ....... But there is lots of money in buying just before close and selling the next day.
 
Quote from Mikey111:

Yes, see my reply on Earnings Play earlier today. You are looking for a strong move on a specific equity - big up, or big down - you don't really care. If there is an inconsequential move you lose Theta and so you would want to close off the position before too long.
To summarise you are selling reverse Call ratio spreads just before some major announcement or some major anticipated event.
Generally, you don't stand to gain much in this game, given the risk and given the market maker's spreads, and given the difficulty in predicting the underlying direction.
Best wishes

Wow, you managed to completely leave out IV. Theta? That's it? Tell you what. Before posting "plays" I think you need to learn a little about what you're talking about first.

If what you say is true, you could just "straddle" (or in your case strangle.....pun intended ) your way to financial freedom and in OUR case a better society :D.
 
Back
Top