Intraday Options Trading ?

[Quanto]

Hi there,

I've been trading regular US stocks for a while.
Intraday, holding between 5min and up to 2h max.
Buy low sell high, or shorting. (not gambling, indicator based strategy)

Just wondering if it's possible to trade common US stocks intraday as above - using options ?

Is it possible? Are there advantages ? Disadvantages ?

Please no complicated answers - I just want to know if worthwhile looking into it.

Thanks a lot

IMO options are not suited for daytrading, you should hold it at least overnight.
Due to big B/A spreads one needs to hold it even more than 2+ weeks or so, IMO.
Of course depends on the strategy used, and there are countless strategies possible with options.

 

[trade4succes]

Options have the benefit of theta decay if you're short. Some time I'll turn my directional trade into a strangle if the stock goes against me.and collect theta. Of course requires being able to value an option and knowing how to adjust positions. It's required to have an if-thin plan and understand how the Greeks change.

Good if it works for you, but in general theta decay is not an edge in any way.

 

[taowave]

Why would you ever do that??

You are wrong directionally, then short the strangle??

Why wait??

What does being wrong on a directional bet have to do with shorting a strangle??

Completely independent bets that should stand on their own..

Options have the benefit of theta decay if you're short. Some time I'll turn my directional trade into a strangle if the stock goes against me.and collect theta. Of course requires being able to value an option and knowing how to adjust positions. It's required to have an if-thin plan and understand how the Greeks change.

 

[Ironplates]

what about going long OTM butterflys. the risk to return is worth it.
because all those 20% deltas sometimes get hit and its better than playing the credit spread side and getting whacked picking up nickels in front of a freight train.
if and when price moves into the tent, thats when the theta works for you. consider 30 to 15 maybe even 0 DTE on that approach.