how to improve SPYder directional weekly options strategy (only long Calls or Puts)

T

turco_directo

Hi ET users,

I'm new in this forum. I have been trading actively directional options last 2 years. I only buy SPY weeklies and get out my position at the end of my day. I am taking out my profit every week and continue with same amount of initial capital, but still something missing here and blown out few accounts in the past. Can anyone refer any reliable online source for options entry and exit signals? I have tested out few but they were nothing better than conman. Thanks again
 
If you just bought the SPY at your designated entry/exit points does the strategy work? In other words, is it something about switching to long weekly options that turned a winning setup into a losing/break-even one?

Does one side tend to make money (like only your Calls or only your Puts)?
 
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I have spent a lot of time searching for a system that can accurately pick direction. I have found that focusing on risk management or money management and cost basis reduction rather than focusing on direction is a way to find consistent returns.
 
SPY options spreads are very narrow, and it's a market benchmark so that's why I only trade spyders. My experience with puts are not great unless there's a major selloff or bad news. Algo moves or short squeeze will kill extrinsic values out of them. You can end up leaving so much on table. Of course same thing goes with calls.

I usually try to scalp 20 cents. I trade first 1 hour of the morning, 3 trades a week since my account is under 25k. I had days where I made 10k in few hours, but also days where I blew my account. Last two years I have not made any profit neither significant loss.

Lately entire move is overnight GAPs. If you have capacity to catch those than it's great otherwise intraday option trading is very hard especially on SPYder.

That's why I'm looking for a reliable service for proven entry exits on large cap equities where I can scalp weekly options
 
turco_directo said:
SPY options spreads are very narrow, and it's a market benchmark so that's why I only trade spyders. My experience with puts are not great unless there's a major selloff or bad news. Algo moves or short squeeze will kill extrinsic values out of them. You can end up leaving so much on table. Of course same thing goes with calls.

I usually try to scalp 20 cents. I trade first 1 hour of the morning, 3 trades a week since my account is under 25k. I had days where I made 10k in few hours, but also days where I blew my account. Last two years I have not made any profit neither significant loss.

Lately entire move is overnight GAPs. If you have capacity to catch those than it's great otherwise intraday option trading is very hard especially on SPYder.

That's why I'm looking for a reliable service for proven entry exits on large cap equities where I can scalp weekly options
More...

I spent my entire Saturday today watching National Geographic lion and wolf and birds and other animal documentaries on YouTube -- I couldn't help to notice some of the parallels that are similar to trading. o_O:wtf:

(just some random food for thought)
 
10k profit on a ~20k account makes me wonder if you're just trading too big for the account size. Also, are you trading SPY options (the ETF) or the index options? You could probably save a ton on commissions and qualify for better tax treatment by using the index options at the equivalent size since you'd use far less contracts. Or maybe the spread isn't as good?

If you use an alert service I think you're better off swing trading (and perhaps selling credit spreads) rather than scalping. That would also avoid the issue of missing the overnight moves and drop the weekly limit since PDT doesn't matter.
 
lawrence-lugar said:
I spent my entire Saturday today watching National Geographic lion and wolf and birds and other animal documentaries on YouTube -- I couldn't help to notice some of the parallels that are similar to trading. o_O:wtf:

(just some random food for thought)
More...

You don't have to be the fastest but it helps, being near and in same direction of bigger animals help a bunch so you not fighting the tape, Lions don't get near herd, they tend to look for uneducated newbies to the outside or wounded ones. Take a fast bite running by to wound them of course works well, but I rather be the vulture to pick up all the pieces that are easily left behind.
 
I been testing using 60 minute bars on the underlying but won't go below 60 minutes, take the top 25 volume stocks/EFTs, I might stay 1-2 days, but I won't buy anything other than discounted and has to have at least 2 weeks left on the option. I have some other filters I use, but it is a good start. Slap a moving ave and when price comes back to M.A., I am in, also support/resistance, cheap risk. Options are nothing but how to control risk best you can, risk little aiming for 5 to 1 min reward to risk. As it is, harder to do well when just buying them.
 
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