Day Trading Options

[easymon1]

I only day trade them, buying both puts and calls on options that expire in a week or two.

What is your Entry Trigger?
What few columns of the option chain do you pay most attention to?

 

[caroy]

Hi everyone. I'm new to the forum. I have been dabbling with options for a long time, mostly selling covered calls. Recently, I have been trading TQQQ (3x the performance of the nasdaq) options. I only day trade them, buying both puts and calls on options that expire in a week or two. I did extremely well last week, and was wondering what you more experienced option traders think. TQQQ is extremely volitile, and i need just a small move in the underlying stock to make a nice profit. If my trade is going the wrong way, I usually double down bring my cost basis down. I never hold options overnight. Your thoughts are greatly appreciated.

Interesting post and style. I think what you'll find is experienced option traders trade a wide array of styles. Some specialize in income trades with ICs as a monthly write. Some run the wheel on the index. Some sell cash covered puts. I've gravitated towards trading weeklies with butterflies and playing straddles on expiration day. If you're going long the options I think focusing on risk management and profit targets is the next step. I've day traded TQQQ SQQQ and they have nice moves. I can't day trade often as I'll end up in PDT jail. You could learn to manage some trades with delta hedging / gamma scalping. But if what you're doing is working keep refining the system. If you're only going long the options you know your max risk at entry.

 

[lindq]

Your thoughts are greatly appreciated.

TQQQ underlying has good volume and tight spreads, and I trade it regularly.

But that is NOT the case with the options.

Over time the additional costs will be a big drag on any profits, and make it very difficult for you to stay alive.

 

[ironchef]

@jeffalvinson day traded options for years and had a predictive system that was >60% accurate. I have not seen his posting for a while so not sure if he is still active but his old posts are still available to read.

He was also quite generous in discussing the basic working mechanisms of his system. I don't think it is fake because there were some good logics to the approach and he wasn't selling anything. You folks are smart perhaps you can duplicate his successes.

 

[wildchild]

Yes, good question. I thought that if I got stucknin a sour trade, I could hold for an additional day or two to see if the trade turns around. Good thought though, I may do that in the future.

If you are stuck in a bad trade, dont give it more time, get out and live to fight another day.

 

[Longislander]

What is your Entry Trigger?
What few columns of the option chain do you pay most attention to?

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.

 

[BlueWaterSailor]

9x? What etf family offers that? What is the symbol? Thank

It's "TQQQQQQQQQ", obviously. Duh!

 

[easymon1]

So I buy tqqq calls at 955am

I sell those puts around 215

What do you look at to choose a strike price for entry?

 

[Longislander]

What do you look at to choose a strike price for entry?

I always choose a strike price at the money. With the wild swings we have seen recently, the probability of a successful trade is good. I was very successful yesterday once again. I know there will be trades where I have to take a loss, but I have had very good results lately.p

 

[easymon1]

Any static with fills?