Day trading SPX index options. 100% daily ROI possible?

[TraderMontreal]

Hi,

What is the best strategy to day trade SPX options?
I am trading one account where I am only allowed to trade SPX index options and no naked positions and no portfolio margin. I would love to day trade futures but it's not possible for now.

- Would you buy debit spreads in the direction you think you are going?
- Would you sell ATM credit spreads in the opposite direction?
- Would you leg in the spread buying first the long side and then selling to close complete the spread?
- Buying an ATM option and hoping for a good move?

I know of someone who claims to make 100% ROI PER DAY! Probably he doesn't have my restrictions. But he doesn't want to share his formula. Is that guy BS or is it feasible?

Thanks a lot in advance,

TraderMontreal

 

[Maverick74]

It's 100% BS.

 

[bigbrian000]

The tricky part is that -100% roi in a day is also possible. OTM options oftentimes double in a day or an hour, but if you're on the wrong side, you can lose 80% of your investment too. Your friend is probably doing this with a small percentage of his capital because of the potential risk. Classic risk management. Question your friend further and ask what his strategies are.

 

[der_kommissar]

Hi,

What is the best strategy to day trade SPX options?
I am trading one account where I am only allowed to trade SPX index options and no naked positions and no portfolio margin. I would love to day trade futures but it's not possible for now.

- Would you buy debit spreads in the direction you think you are going?
- Would you sell ATM credit spreads in the opposite direction?
- Would you leg in the spread buying first the long side and then selling to close complete the spread?
- Buying an ATM option and hoping for a good move?

I know of someone who claims to make 100% ROI PER DAY! Probably he doesn't have my restrictions. But he doesn't want to share his formula. Is that guy BS or is it feasible?

Thanks a lot in advance,

TraderMontreal

He probably had a few 100% ROI days trading the far OTM puts/calls during an OpEx...Just a cursory glance at the charts would tell you that 95% of the time the SPX can't move enough for someone to consistently achieve that (nevermind trying to get fills on both sides of the trades and slippage)...

 

[OTM-Options]

Hi,

What is the best strategy to day trade SPX options?
I am trading one account where I am only allowed to trade SPX index options and no naked positions and no portfolio margin. I would love to day trade futures but it's not possible for now.

- Would you buy debit spreads in the direction you think you are going?
- Would you sell ATM credit spreads in the opposite direction?
- Would you leg in the spread buying first the long side and then selling to close complete the spread?
- Buying an ATM option and hoping for a good move?

I know of someone who claims to make 100% ROI PER DAY! Probably he doesn't have my restrictions. But he doesn't want to share his formula. Is that guy BS or is it feasible?

Thanks a lot in advance,

TraderMontreal

 

[TraderMontreal]

Can he do it with high beta stocks? Or only trading gaps?

 

[stoic]

Hi,

I know of someone who claims to make 100% ROI PER DAY! Probably he doesn't have my restrictions. But he doesn't want to share his formula. Is that guy BS or is it feasible?

Thanks a lot in advance,

TraderMontreal

mmm... let me see...?

If a guy could pull off a 100% ROI.... and he did that only once a week....starting with only $2,000..... compounded... that would work out to $9,007,199,254,140,990,000 by the end of the year..... mmm... at a 38% tax rate that would be $3,422,735,716,801,580,000.....

Hey!!! That would pay off the National Debt !

 

[OTM-Options]

One 2x trade per week starting with $100.00

1. $100
2. $200
3. $400
4. $800
5. $1,600
6. $3,200
7. $6,400
8. $12,800
9. $25,600
10. $51,200
11. $102,400
12. $204,800
13. $409,600
14. $819,200
15. $1,638,400
16. $3,276,800
17. $6,553,600
18. $13,107,200
19. $26,214,400
20. $52,428,800
21. $104,857,600
22. $209,715,200
23. $419,430,400
24. $838,860,800
25. $1,677,721,600
26. $3,355,443,200
27. $6,710,886,400
28. $13,421,772,800
29. $26,843,545,600
30. $53,687,091,200
31. $107,374,182,400
32. $214,748,364,800
33. $429,496,729,600
34. $858,993,459,200
35. $1,717,986,918,400
36. $3,435,973,836,800
37. $6,871,947,673,600
38. $13,743,895,347,200
39. $27,487,790,694,400
40. $54,975,581,388,800
41. $109,951,162,777,600
42. $219,902,325,555,200
43. $439,804,651,110,400
44. $879,609,302,220,800
45. $1,759,218,604,441,600
46. $3,518,437,208,883,200
47. $7,036,874,417,766,400
48. $14,073,748,835,532,800
49. $28,147,497,671,065,600
50. $56,294,995,342,131,200
51. $112,589,990,684,262,400
52. $225,179,981,368,524,800

I'm at week 14

 

[OddTrader]

Can he do it with high beta stocks? Or only trading gaps?

Did he later clarify Who actually made the 100% ROI on his investment amount?

 

[lawrence-lugar]

One 2x trade per week starting with $100.00

1. $100
2. $200
3. $400
4. $800
5. $1,600
6. $3,200
7. $6,400
8. $12,800
9. $25,600
10. $51,200
11. $102,400
12. $204,800
13. $409,600
14. $819,200
15. $1,638,400
16. $3,276,800
17. $6,553,600
18. $13,107,200
19. $26,214,400
20. $52,428,800
21. $104,857,600
22. $209,715,200
23. $419,430,400
24. $838,860,800
25. $1,677,721,600
26. $3,355,443,200
27. $6,710,886,400
28. $13,421,772,800
29. $26,843,545,600
30. $53,687,091,200
31. $107,374,182,400
32. $214,748,364,800
33. $429,496,729,600
34. $858,993,459,200
35. $1,717,986,918,400
36. $3,435,973,836,800
37. $6,871,947,673,600
38. $13,743,895,347,200
39. $27,487,790,694,400
40. $54,975,581,388,800
41. $109,951,162,777,600
42. $219,902,325,555,200
43. $439,804,651,110,400
44. $879,609,302,220,800
45. $1,759,218,604,441,600
46. $3,518,437,208,883,200
47. $7,036,874,417,766,400
48. $14,073,748,835,532,800
49. $28,147,497,671,065,600
50. $56,294,995,342,131,200
51. $112,589,990,684,262,400
52. $225,179,981,368,524,800

I'm at week 14

Go All the Way_
Push it to the Limits...,