Day Trading Options

[Longislander]

Any static with fills?

None at all. The TQQQ options have high volume and tight spreads. I get instant executions.

 

[Longislander]

Just want to follow up with my TQQQ options that I day trade. For the last 7 trading days, I have made between $1,200 and $1,900 each of those days. I might be lucky, but TQQQ has such wild swings, it's almost impossible to not make money using this etf. The only way I can see getting in trouble is if the nasdaq either dives or rises steeply intra day. If you have any thoughts, please let me know.

 

[BlueWaterSailor]

Hi there. I have been following certain patterns. Recently, at 10am exactly, stocks have been going up, they then tend to stay in a certain narrow range, then at 230, 300 and 330pm, buyers come in. So I buy tqqq calls at 955am, sell them around lunch, and buy puts. I sell those puts around 215, and then buy calls into the close. Unless the fed is commenting,bi have done well so far. When market sentiment changes, I will look for patterns then.

OK, that's got me curious. For reference, front week ATM calls on TQQQ are running around 1.70; puts are ~2.05.

Date 10:00 AM Noon 2:15 PM 4:00 PM Result
2/10 $108.60 $105.75 $106.18 $104.00 Loss on all trades
2/11 $107.40 $104.25 $106.96 $108.31 Loss on all trades
2/12 $107.57 $108.67 $108.18 $110.14 Loss on 2/3 trades, small win on EOD calls
2/16 $111.33 $108.88 $109.55 $109.20 Loss on all trades
2/17 $107.04 $105.33 $107.20 $107.71 Loss on all trades

The "wild swings", from 2/10 up to and including today, are between 103.42 and 111.85.

Doesn't exactly look look like a money machine from where I sit. Did I miss something?

 

[Longislander]

OK, that's got me curious. For reference, front week ATM calls on TQQQ are running around 1.70; puts are ~2.05.

Date 10:00 AM Noon 2:15 PM 4:00 PM Result
2/10 $108.60 $105.75 $106.18 $104.00 Loss on all trades
2/11 $107.40 $104.25 $106.96 $108.31 Loss on all trades
2/12 $107.57 $108.67 $108.18 $110.14 Loss on 2/3 trades, small win on EOD calls
2/16 $111.33 $108.88 $109.55 $109.20 Loss on all trades
2/17 $107.04 $105.33 $107.20 $107.71 Loss on all trades

The "wild swings", from 2/10 up to and including today, are between 103.42 and 111.85.

Doesn't exactly look look like a money machine from where I sit. Did I miss something?

Hello. Maybe wild was not the right word, but they are pretty big in my opinion. If you read my original post, I need under a $1 increase/decrease in price to be successful. I don't just buy 1 or 2 options per trade. I start out with 10-15 options per trade, and when I close out my trade, I could have as much as 45-60 options. Yesterday, I had 50 options at one point and needed just a 30 cent swing in the underlying stock to make my nut. I appreciate all the work you out into your post. Good luck to you.

 

[trend2009]

Hello. Maybe wild was not the right word, but they are pretty big in my opinion. If you read my original post, I need under a $1 increase/decrease in price to be successful. I don't just buy 1 or 2 options per trade. I start out with 10-15 options per trade, and when I close out my trade, I could have as much as 45-60 options. Yesterday, I had 50 options at one point and needed just a 30 cent swing in the underlying stock to make my nut. I appreciate all the work you out into your post. Good luck to you.

look like you use average down to accumulate positions, the wish price to reverse?

 

[Longislander]

look like you use average down to accumulate positions, the wish price to reverse?

Yes, that's true. So far, I haven't been burned yet, but I realize the risk in doing so. Just a side note: I tried using complicated strategies so many traders speak of. I have listened to podcasts ad-nauseam. It doesn't work for me. I admit I'm not good at it. I have better luck keeping it simple.

BTW, there is one very good podcast.."options action" which is out out every Friday by CNBC. It's about 20 minutes with Maria Bartoromo, and their panel gives advice for the upcoming week. Good luck.

 

[BlueWaterSailor]

Hello. Maybe wild was not the right word, but they are pretty big in my opinion. If you read my original post, I need under a $1 increase/decrease in price to be successful.

See, that's why I posted the actual numbers. The price moved against you in almost all of those cases. E.g., on 2/10:

Bought a call ~108.60, price went down to 105.75. Lost.
Bought a put ~105.75, price went up to 106.18. Lost.
Bought a call ~106.18, price went down to 104.00 Lost.

Looks like you got the direction wrong every single time. But yet you claim to have made money. "For the last 7 trading days [...] it's almost impossible to not make money using this etf." Big talk.

I don't just buy 1 or 2 options per trade. I start out with 10-15 options per trade, and when I close out my trade, I could have as much as 45-60 options. Yesterday, I had 50 options at one point and needed just a 30 cent swing in the underlying stock to make my nut. I appreciate all the work you out into your post. Good luck to you.

What you got, in the examples above, is the price moving against you by dollars, not cents. For a $3 down move from an ATM strike, you'd be losing more than $1 in value - call it over $1k for 10 lots. And ALL but one of the trades you described here are losers which would have put you more than $10k in the hole if you actually did them.

"Sure I'm losing money on every trade, but I'll make it up on volume!"

I'm not straight-up calling you a liar, but the strategy you're claiming to use is a total failure when checked against the chart for the period in which you're claiming it.

 

[Windlesham1]

My advice. Focus on risk management and return of capital. Just because you did good one week does not mean you will do good next week. One bad trade can easily wipe out all your gains. (Or worse result in liquidation and a catastrophic destruction of you bankroll)

Make sure you understand the products you are trading 110% Always hedge against the black swans even if it means lowering your returns. OR end up like LTCM etc.

Doubling down if a trade goes against you is called the "Martingale Strategy" A bad idea. If a trade is going against you, close out and take your loss, Plan for the next trading day and learn from your losses so you can trade another day. Always protect that bankroll.

I can tell you that with optionstrading a Martingale works very very well- except when Covid hits. Almost every single trade I have done over the years, I could have added to when in a ' losing' position. Latest trade- opened for credit 14, at one point it hit 40, went out at expiry for 0. I don't have the balls these days

 

[yc47ib]

Hi there. I have been following certain patterns. Recently, at 10am exactly, stocks have been going up, they then tend to stay in a certain narrow range, then at 230, 300 and 330pm, buyers come in. So I buy tqqq calls at 955am, sell them around lunch, and buy puts. I sell those puts around 215, and then buy calls into the close. Unless the fed is commenting,bi have done well so far. When market sentiment changes, I will look for patterns then.

This pattern could change......

 

[caroy]

I'm not straight-up calling you a lia

I would think OP could post a pdf of a statement showing the trades and just block out the identifying information to show their profitability. I mean intraday option prices can swing pretty wide if he's in and out pretty quickly he should be able to make these profits. But I would find it hard to believe that they are all winners. When making directional bets I know traders can have hot streaks but reality is there should be more losers mixed in with it. Thank you for pressing the issue. Proof is the friend of truth.