Help with executing option trade

E

eladaniel

Hey guys,

I been working on a new strategy with options on the paper money platform. Everything seems to go more than well the only problem is the executing . I am basically scalping, the minimum I enter with is 50 contracts. On the paper money the selling and buying part isn't real, so i wanted to know if anyone in here has any experience with the strategy that I am working on right now?
My concern is that once I will go on the real market I wont be able to sell all the contracts(in seconds) and then I will loose the trade.
I would be grateful if anyone in here will be able to answer this question
 
eladaniel said:
My concern is that once I will go on the real market I wont be able to sell all the contracts(in seconds) and then I will loose the trade.
More...

most likely.
Best bet is to test live with 1 contract.

you might need to give people more info on what platform you are testing on and maybe more details of what you are trying to do and others might be able to help.
 
well, I use think or swim. What I am doing is not that complicated. It's pretty simple buying options(min 50+ contracts) with high delta. All my trades are based on movements of minutes. I am really good on recognizing reversals. So let's say I buy 50 contracts of apple 535 call. and I sell it after a movement of minimum $1. Please check the attached file, Let me know if it gives you more info about my question
 
I did test this strategy with 1 contract and 5 contracts and it went smoothly. However, selling 50 contracts is not like selling 5 contracts.
 
IF the underlyings are VERY liquid eg AAPL...GOOG,,SPY...IWM etc then you will have no problem..IF they are NOT then you will only get partial fills so they might destroy your "edge"
 
Do you mean you are really good at predicting reversals in AAPL or in general?
If you can do it generally, why not switch to futures?
Even the most liquid option will not approach the liquidity of futures contracts.
You'll get all the leverage you want, liquidity, and you won't have to mess around with different strikes.
 
I am trading futures already. But I am working on new strategy with options. I trade only high volume options e.g appl fb tsla goog and more. Yeah that's what the think or swim support told me that i should not have any problem to sell 50 contracts. but when i look on time and sales of the option.. lets say appl. I barley see ppl who buy more than 5 contracts and it makes wonder if my strategy is realistic.
 
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