is scalping spy weekly option possible?

[MKTrader]

I disagree. The site does not need to change it's name. What needs to change is the intelligence of the average human, especially in this day and age, to the upside. This way they can realize that the power to make decisions is not based on the name of a website or the content therein, but the power and content they have within themselves.

What needs to change is this whole, "If I do not understand something, it is your fault" syndrome, which leads to the "I got second place but I still deserve the first-place gold medal, because I tried" syndrome.

It has bled into the most sacred of places on the internet, before this social media BS took over the consciousness of the world...BBS, and IRC. Now they are infected with it. IRC is most likely a bloody mess, and BBS like this one are just heading south, unless we maintain control on the mammy mammy stuff.

@trend2009, this has nothing to do with you. This is just between MKTrader and I. It is a conversation that can go elsewhere, but I had to respond. Teehee Carry on. Sorry about that.

My point is that "elite" assumes some level of competence and knowledge. At the very least, one should be a struggling trader who knows what doesn't work (i.e., things like scalping weekly options, Forex miracle EAs, Gann/astrology forecasting, etc.).

 

[tiddlywinks]

Not scalping, but me thinks, still on topic...

I snagged this (attachment below) from somewhere about 5 years ago. To me, it makes sense logically, but I have never tested it, live or sim. I'd like to hear if @destriero has any input on the strat...

 

[Robert Morse]

To me, it makes sense logically

Sorry, but no. It makes no sense.

I just read it again, and even worse. He starts with you have a downward bias but you will buy a call and hedge it after the ES goes up enough to own the call at or below parity.

 

[ETJ]

Just some general thoughts:
Keep your overall friction as low as possible so whether you use SPY or SPX do the math. SPX will always have the exchange fee and SPY will almost always have the rebate.
It's just as important to learn when not to trade as it is to learn to trade your setup.
Can your style avoid the opening and close of the day and if so do so.
Be aware of SPY X-Div days and how they impact you if you do carry overnight.

 

[qlai]

Risk free but possibly lose 100%? Isn't it easier to simply buy a put?

 

[tiddlywinks]

Sorry, but no. It makes no sense.

I just read it again, and even worse. He starts with you have a downward bias but you will buy a call and hedge it after the ES goes up enough to own the call at or below parity.

We will disagree. It does make complete sense. I think you missed the second sentence... "If you do not get the fill on the futures contract, your risk will simply be the amount you paid for the option"

As for the EXAMPLE bias, it works the other way too. Buy a put, then buy(long) contract, offset with the price paid for the put.

 

[Robert Morse]

We will disagree. It does make complete sense. I think you missed the second sentence... "If you do not get the fill on the futures contract, your risk will
simply be the amount you paid for the option"

As for the EXAMPLE bias, it works the other way too. Buy a put, then buy(long) contract, offset with the price paid for the put.

Ok, If you have a downward bias and the index goes down before up-what next?

 

[tiddlywinks]

Ok, If you have a downward bias and the index goes down before up-what next?

I think you missed the second sentence... "If you do not get the fill on the futures contract, your risk will simply be the amount you paid for the option"

 

[Robert Morse]

I think you missed the second sentence... "If you do not get the fill on the futures contract, your risk will simply be the amount you paid for the option"

No, I read it. If I expect the market to go down, I would never, ever, buy a call first looking for a dip after it goes up enough to get short after. I'm going to scale into a short delta position. I guess you only trust the opinion of destriero.

Good luck.

 

[tiddlywinks]

No, I read it. If I expect the market to go down, I would never, ever, buy a call first looking for a dip after it goes up enough to get short after. I'm going to scale into a short delta position. I guess you only trust the opinion of destriero.

Good luck.

The text is for a ONE-DAY play. A Friday (weekly opt exp) to be exact. Your method is for picking an exact entry for your direction bias. This is not that kind of play. This is a riskless trade (imo, afai can tell), IF you 1) get filled on both sides, 2) your directional bias is correct by the end of day(assuming enough range/volatility).

Yea, I'd like to hear from @destriero